2013 (6) TMI 121 - HC - VAT and Sales Tax

Suspension of licence - maintainability of appeal - Held that - The overall circumstances under which such orders are passed and the context in which such expressions are used need to be understood in right perspective. On the facts of the present case, not inclined to invalidate the impugned order passed by the respondent on that ground for the reasons already recorded herein before. Since the petitioner has a right of appeal against the impugned order, no reason to entertain the Writ Petition for adjudication on merits. Writ Petition dismissed with liberty to the petitioner to avail the remedy of appeal.

Summary

Issues:
1. Suspension of A.4 license by respondent deemed illegal and arbitrary.

Analysis:
The Writ Petition was filed seeking a Mandamus to declare the respondent's action of suspending the petitioner's A.4 license as illegal and arbitrary. The petitioner, a retail dealer of Indian Made Liquor, had his license suspended after Prohibition and Excise officials allegedly found 11 boxes of non-duty paid liquor in his shop during an inspection. The respondent initiated proceedings against the petitioner and suspended the license under Section 31(1)(b) of the A.P. Excise Act, 1968, pending enquiry. The petitioner's counsel acknowledged the availability of alternative remedies of two successive appeals under Section 63 of the Act but argued that the peremptory finding recorded by the respondent necessitated the Writ Petition, citing a relevant judgment. The respondent's order implied the petitioner's involvement in license condition violations, but the court noted that the overall context and circumstances must be considered. The court highlighted that inadequacy in expressions by administrative/quasi-judicial bodies does not ipso facto render their orders illegal or invalid. While a previous judgment quashed a similar order due to a peremptory finding at the enquiry stage, the court declined to invalidate the present order, emphasizing the petitioner's right to appeal. Consequently, the Writ Petition was dismissed, granting the petitioner liberty to pursue the remedy of appeal. A related interim relief petition was disposed of as infructuous following the dismissal of the Writ Petition.