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Registration of partnership business in different states under the Excise Acts. Analysis: The High Court of Madhya Pradesh addressed a reference made by the Income-tax Appellate Tribunal regarding the registration of a partnership business operating in two different states under the Excise Acts. The partnership in question involved excise contracts in Madhya Pradesh and Orissa, with a partnership deed executed in 1969. The Tribunal granted registration for the business in Orissa but refused it for the Madhya Pradesh business due to a perceived contravention of the Madhya Pradesh Excise Act's rules. The court emphasized that the legality of the partnership in Orissa should be judged under the Bihar and Orissa Excise Act, not the Madhya Pradesh law. Section 23 of the Bihar and Orissa Excise Act was crucial, stating conditions for granting exclusive privileges but not explicitly prohibiting partnerships. The court cited previous cases to support the view that mere entry into a partnership for liquor business does not violate such provisions unless expressly prohibited. The absence of evidence showing a transfer of the license to the partnership further supported the legality of the partnership in Orissa. The court also highlighted the distinction between rules in different states regarding partnerships in liquor businesses. Ultimately, the court concluded that registration could be granted for the partnership business in Orissa, following precedents and the specific provisions of the relevant Excise Acts. In conclusion, the High Court of Madhya Pradesh clarified that the registration of a partnership business operating in Orissa under the Excise Acts was permissible. The court's decision was based on the interpretation of relevant provisions in the Bihar and Orissa Excise Act, emphasizing that the legality of the partnership should be assessed under the specific state laws governing the business. The court's analysis also considered previous judgments and the absence of evidence indicating any violation of licensing rules in the partnership arrangement. The ruling aligned with established principles and precedents regarding partnerships in liquor businesses under different state regulations, ultimately allowing registration for the Orissa business conducted by the partnership.
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