2013 (7) TMI 187 - HC - VAT and Sales Tax

License for the country liquor - Search Conducted by Excise officials - unaccounted bottles of liquor were found Excise Authorities cancelled the license of the petitioner for the remaining period - Held that - Upheld the orders of lower authorities. However, in the next auction for the coming excise year, the Assessee may also be allowed to participate in the auction proceedings along with other candidates but the decision will be taken on merit. Decided against the Assessee.

Summary

Issues:
1. Assailing the appellate order dated 06.06.2011 under Section 11(1) of U.P. Excise Act, 1910.
2. Allegations of improper search and cancellation of license.
3. Justification of lower authorities' orders.
4. Validity of incriminating material found during the search.
5. Relief sought by the petitioner.

Analysis:
1. The petitioner challenged the appellate order dated 06.06.2011 under Section 11(1) of U.P. Excise Act, 1910, along with orders by lower authorities. The petitioner, holding a liquor license, faced a search at the business premises where unaccounted bottles were discovered. The counsel argued the search lacked proper procedure and the petitioner was not given a chance to defend, rendering it illegal.

2. The petitioner's license cancellation was contested as wrongful for the remaining period in the excise year. The standing counsel, however, defended the authorities, citing the recovery of illegal liquor during the search. It was revealed that the petitioner was involved in illicit liquor activities beyond the authorized limits, justifying the license cancellation.

3. The court, after reviewing the evidence, found incriminating material during the search, indicating the petitioner's engagement in manufacturing illicit liquor. Referring to legal precedents, the court upheld the lower authorities' decisions based on the seized material, concluding that relief for the petitioner was unwarranted due to involvement in illegal liquor trading.

4. The court referenced specific cases to support its decision, emphasizing the petitioner's clear involvement in illegal liquor activities based on the seized items. The court found no grounds to challenge the validity of the search, given the incriminating evidence discovered during the operation.

5. Despite dismissing the writ petition, the court allowed the petitioner to participate in the next auction for the upcoming excise year, subject to merit-based decisions. The judgment maintained the lower authorities' orders, highlighting the petitioner's engagement in illicit liquor trading as the basis for the decision.