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TMI Blog2006 (5) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... re of IMFL. Respondent No. 1 had to purchase rectified spirit and extra neutral alcohol from distilleries owned by others. For possession and use of rectified spirit including the extra neutral alcohol, license was required in Form R.S.II prescribed under the Bombay Rectified Spirit Rules, 1951. The manufacture and sale of IMFL is supposed to take place under the supervision of the staff of the State Excise Department as provided in Rule 12(2) of the Bombay Rectified Spirit Rules, 1951. As per Rule 17 (12) of the Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules, 1966 and as per condition No. 1 of the PLL license obtained thereunder, Respondent No.1 as licensee, had to pay the cost of the supervisory staff to the State in terms of Section 58A of the Bombay Prohibition Act. 3. As it is elsewhere, in the State of Maharashtra also, under Section 12 of the Bombay Prohibition Act, manufacture of liquor, construction or working of a distillery or brewery, import, export, transport, possession, sale or purchase of liquor are banned. Though, under Section 13 of the Act, the bottling of liquor for sale, consumption or use of liquor is prohibited; under Section 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Organic Chemicals Ltd. (supra) being SLP (C) No. 12180 of 2001, filed in the Supreme Court, the Supreme Court has ordered Vam Organic Chemicals Limited, a licensee similarly situated, only to file an undertaking that in case the appeal is allowed by the Supreme Court, Vam Organic Chemicals Limited would satisfy the liability as per law and as determined by the Supreme Court within the time fixed by the Supreme Court. The prayer was opposed by the State. The High Court granted an interim order staying the recovery of the fee on the strength of the decision in Vam Organic Chemicals Limited and the interim order granted by this Court in the appeal from that decision. 5. In its counter affidavit, the State had indicated that the position of the first respondent who does not manufacture rectified spirit for its own consumption was different from the case of Vam Organic Chemicals Limited and that the decision therein or the interim order made in appeal therefrom, does not enable the respondents herein to contend that an interim order as sought for by them should be granted by the Court. It was also submitted by the State that there was a stay as regards earlier years and if during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... care and caution and only on appropriate conditions. Learned counsel submitted that the right to trade in IMFL was a mere privilege granted to the licensee by the State. 7. Learned counsel for respondents, on the other hand, submitted that the case put forward by the respondents was squarely covered by the decision in Vam Organic Chemicals Limited and there was no justification in interfering with the interim order passed by the High Court especially in the context of the order passed by this Court in the appeal from the decision in Vam Organic Chemicals Limited. Learned counsel submitted that the undertaking to be given by the respondents was adequate to protect the interests of the State. It is submitted that the fee impugned was not an impost on potable alcohol, but on rectified spirit and the State has no competence to impose such a levy. Learned counsel submitted that various Writ Petitions were pending in the High Court and their final disposal was being delayed only because of the attempt of the State to stall their hearing. There was no justification in filing an appeal only against the interim order in their case when similar orders have been passed in various other wri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the appellants that even in the conditions attached to the license, there is an undertaking by the licensee to pay the fees as demanded. It is his submission that there was no reason to water down that obligation by way of an interim order when an attempt is made to challenge the very imposition of the fee which a licensee had agreed to pay in the first instance. We see some force in the submission, but have to balance it with the plea that the State has no power to impose such a levy. We have also to take note of the fact that after all, any amount paid to the State, could be adjusted either towards future liability or directed to be refunded by the State in case the challenge of the licensee succeeds in the Writ Petition when it is finally heard and decided. The only purpose for which the State undertakes liquor trade, notwithstanding the mandate of Article 47 of the Constitution of India, is the revenue that it generates. This aspect also cannot be lost sight of while considering the balance of convenience in cases where a liquor licensee seeks an interim order staying the fulfillment of his obligation to pay all the fees or other charges demanded from him as such a lic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er that if the respondents pay one-half of the license fee payable by the respondents and as demanded of them and give an undertaking that they will pay the balance 50% of the levy within the time fixed by the High Court, if the writ petition were to be dismissed, the recovery of the licence fee payable as per the impugned notification will be kept in abeyance until the disposal of the writ petition by the High Court. The respondents are given three months time from today to file a modified undertaking and to deposit 50 per cent of the license fee payable for the Excise Year 2005-2006. The respondents would be liable to pay 50 per cent of the license fee for the subsequent years on or before the thirty-first of December of that year and to file undertakings in the subsequent years until the Writ Petition is heard and finally decided by the High Court. If the respondents fail to make the deposit and to file the undertaking as indicated above, the appellants will be free to take all steps that are permissible under law for recovery of the entire fee due from the respondents as may be demanded from them in accordance with the relevant rules. In case the respondents succeed in their ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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