2019 (11) TMI 1707 - HC - Indian Laws

Seeking writ, order or direction in the nature of mandamus commanding the respondents not to recover any amount from the petitioner towards the alleged demand with regards to the quantity of Indian made Foreign Liquor destroyed due to fire accident - constitutional validity of Rule 7(11) of the U.P. Bottling of Indian Made Foreign Liquor Rules, 1969 - vires of the U.P. Excise Act - HELD THAT - The interest of justice will suffice, in the present case, if the Competent Authority/Respondent No. 2 is directed to consider and decide the application moved by the petitioner on 22.10.2019. The Competent Authority/Respondent No. 2 is directed to decide the application moved by the petitioner on 22.10.2019, keeping in view the fact that the money deposited by the petitioner in pursuance of the interim order dated 25.07.2006 passed by this Court and subsequently, the writ petition was allowed by this Court vide judgment and order dated 10.04.2017, thereby setting-aside the impugned demand - Application allowed.

Summary

Issues:
1. Relief sought against impugned orders dated 11th July, 2006 and 17th July, 2006.
2. Challenge to the demand for a significant sum due to destruction of liquor in a fire accident.
3. Declaration of Rule 7(11) of the U.P. Bottling of Indian Made Foreign Liquor Rules, 1969 as null and void.
4. Quashing of the impugned order of the State Government conveyed through a letter dated 17.02.2004.
5. Refund of the amount deposited by the petitioner in compliance with an interim order dated 25.07.2006.

Analysis:

1. The petitioner sought relief against the impugned orders dated 11th July, 2006 and 17th July, 2006. The High Court considered the circumstances and the issues involved, including the question of liability for duty on liquor destroyed in a fire. The Court observed that there was no apparent negligence on the petitioner's part, attributing the incident to an act of God. Various authorities confirmed the absence of negligence, leading the Court to find the demand made by the authorities as illegal and unsustainable.

2. The challenge against the demand for a substantial sum due to the destruction of Indian made Foreign Liquor in a fire accident was examined by the Court. The Court emphasized the lack of evidence to establish negligence on the petitioner's part. The Court dismissed the demand as illegal, highlighting that no responsibility could be fixed without concrete evidence of negligence.

3. The petitioner sought a declaration of Rule 7(11) of the U.P. Bottling of Indian Made Foreign Liquor Rules, 1969 as null and void. The Court analyzed the rule in question and the circumstances of the case. The Court found the demand based on the rule to be unjustified, emphasizing the absence of negligence on the petitioner's part and the lack of material to support the claim of duty imposition.

4. The petitioner also sought the quashing of the impugned order of the State Government conveyed through a letter dated 17.02.2004. The Court reviewed the order and the arguments presented. Based on the findings related to the lack of negligence and the illegality of the demand, the Court allowed the writ petition, setting aside the impugned order and quashing the demand made by the State Government.

5. Regarding the refund of the amount deposited by the petitioner in compliance with an interim order dated 25.07.2006, the Court addressed the non-refund of the deposited sum despite the writ petition being allowed. The petitioner moved an application seeking the refund, emphasizing the success of the writ petition and the unjust withholding of the money by the respondents. The Court directed the Competent Authority to consider and decide the application promptly, ensuring the refund of the deposited amount in light of the judgment setting aside the impugned demand.