9911796707
TMI Blog1988 (2) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules) framed under the Andhra Pradesh Excise Act, 1968 (hereinafter referred to as the Act) and has been carrying on the business of manufacture and sale of wine and other allied products. The excise authorities posted one Inspector, one Sub-Inspector and four Constables at the respondent's factory premises and required the respondent to pay their salaries and allowances etc. in pursuance of Section 28(2) of the Act. The respondent made representations to the excise authorities against the said demand and having failed to get any redress, filed the aforesaid writ petition challenging the demand on two grounds : 1. By virtue of Entry 51 in List 2 of the Seventh Schedule to the Constitution of India, no duty other than excise duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion rightly, by learned Counsel for the respondent that the business which the respondent has been carrying on could not have been carried on by it unless licence had been granted to it under the Act and the Rules. Section 17 of the Act as it stood at the relevant time contemplated grant for a fixed period at any place a lease jointly or severally for the supply, manufacture or sale of any intoxicant subject to such conditions as the Government may deem fit to impose. Section 28 of the Act which deals with the forms and conditions of licence etc. reads as under : 28. Form and conditions of licence etc. (1) Every permit issued or licence granted under this Act shall be issued or granted on payment of such fees, for such period, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing and selling wine etc. to the respondent only provided it was, apart from making any other payment, also willing to pay the salaries and allowances referred to in the aforesaid revisions which for the sake of convenience have been described as establishment charges, and which were sought to be recovered as such under the impugned notice of demand. The respondent Company was not under any obligation to take the licence. It was open to it to have refrained from taking any licence under the Act and the Rules if it was not willing to pay the price as required by the Government for the grant of privilege to manufacture and sell intoxicants. The nature of the payment which a licensee such as the respondent is required to make to the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a privilege and not a right, subject to governmental control. This power of control is an incident of the society's right to self-protection and it rests upon the right of the State to care for the health, morals and welfare of the people. Liquor traffic is a source of pauperism and crime. Since rights in regard to intoxicants belong to the State, it is open to the Government to part with those rights for a consideration. By Article 298 of the Constitution, the executive power of the State extends to the carrying on of any trade or business and to the making of contracts for any purpose. As observed in Harinarayan Jaiswal's case, if the Government is the exclusive owner of those privileges, reliance on Article 19(1)(g) or A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Government under the terms of the auction is neither a fee properly so called which would require the existence of a quid-pro-quo, nor indeed is the amount in the nature of excise duty, which by reason of the constitutional constraints has to be primarily a duty oh the production or manufacture of goods produced or manufactured within the country. The respondents cannot therefore complain that they are being asked to pay excise duty or still head duty on quota of liquor not taken lifted or purchased by them. The respondents agreed to pay a certain sum under the terms of the auction and the Rules only prescribe a convenient mode where by their liability was spread over the entire year by splitting it up into fortnightly instalments. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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