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TMI Blog2023 (9) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... besides an amount of ₹6.00 lacs deposited earlier in terms of Court s order. The petitioner, has thus, deposited the amount of ₹14.50 lacs on account of licence fee and on withdrawal of his petition and till then interim order passed by this Court was operating which had conditioned that the petitioner shall pay an amount of ₹6.00 lacs and remaining amount shall be payable after the disposal of the writ petition. The impugned communication requiring the petitioner to remit penal interest of ₹14.49 lacs in terms of Section 24-A of the J K Liquor Licence and Sales Rules, 1984 can be ordered to be deposited only on non-payment of the licence fee. Since the licence fee had been deposited by the petitioner in terms of the Court order, the same cannot be said to be a delayed payment so as to incur the penal consequences of paying interest in terms of Section 24-A of the J K Excise Act. Rule 20 of the J K Liquor Licence and Sales Rules, 1984 provided that licence unless renewed is determined on 31st March at the end of the financial year. Petition allowed. - HON BLE MR. JUSTICE M A CHOWDHARY, JUDGE For the Petitioner : Mr. Rahul Pant, Sr. Advocate w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril 1998 and no installment shall be less than 1/36th of the total amount of arrears subject to further condition that the interest @ 2% per month shall be charged from 1st of April, 1998 till the outstanding is fully recovered, with further stipulation that no interest shall be charged from the date of stay granted by the Court to 31.03.1998, as such, the petitioner s petition calling into question SRO-68 of 1995 was disposed of vide order dated 26.02.2002 and the petitioner deposited the balance amount of ₹ 8.50 lacs with the respondents which was the Licence Fee for the period from 1995 to 1997. 4. It was further alleged that the respondents vide their Communication No. 1251-53/CRS dated 17.03.2003 directed the petitioner to pay the penal interest of ₹ 14,49,000/- within a period of 15 days from the date of receipt of the notice. 5. Petitioner being aggrieved of the aforesaid Communication dated 17.03.2003 directing the petitioner to pay the penal interest, filed this petition and challenge the impugned order on the ground that the impugned order of recovery of interest has been passed without hearing the petitioner, having been worked out arbitrarily as the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt vide Govt. Order No. 124-F of 1998 dated 07.04.1998 issued an amnesty, however, the petitioner did not avail the amnesty, accordingly, he could not get the relief as the period of amnesty was already over. It was admitted that the petitioner had deposited the licence fee after dismissal of his petition but he had not deposited the additional sum to which it was obligated to pay under Section 24-A of the Excise Act. 7. It has been further pleaded that the provisions of GST Act are not applicable to the Excise Tax and as per the provisions of Section 24-A of the Excise Act, the amount is not as an interest but is as additional sum; that the petitioner itself chose not to take the benefit of Government Order No. 124-F of 1998 and now cannot say that he wants to take benefit of the said order. The petitioner, after filing of the objections by the respondents, filed the rejoinder asserting therein that the petitioner s licence expired on 31.03.1995 and it was not renewed thereafter as his license premises had remained closed and his business was stopped in the year 1995, as such, its licence was determined due to its non renewal, therefore, in absence of licence renewal in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OWP No. 298/1997 dated 25.04.1997, a sum of ₹ 6.00 lacs was deposited by the petitioner besides an undertaking to deposit the remaining amount within six months after the outcome of the subject matter was known; that the petitioner after disposal of his writ petition as not pressed allowing him liberty to operate his remedy and persuade the concerned authority for appropriate relief by filing fresh representation and simultaneously an amount of ₹ 8.50 lacs was also deposited, although not even a single penny on account of licence fee for the financial years in question was payable, yet under duress and the circumstances created by the respondents, the petitioner deposited the whole prescribed licence fee and complied with Order No. 4/Exc. Of 1997 dated 21.04.1997 of the respondent No.2 and there remained nothing outstanding against the petitioner; the impugned Demand Notice pertains to the interest, which as per the respondents is payable for late deposit of licence free, whereas the fact of the matter is neither the licence fee for the aforesaid period ever became payable nor the interest thereon. 10. Learned senior counsel for the petitioner argued that though peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... besides an amount of ₹6.00 lacs deposited earlier in terms of Court s order. The petitioner, has thus, deposited the amount of ₹14.50 lacs on account of licence fee and on withdrawal of his petition and till then interim order passed by this Court was operating which had conditioned that the petitioner shall pay an amount of ₹6.00 lacs and remaining amount shall be payable after the disposal of the writ petition. Earlier, the petition of the petitioner is stated to have been decided on 26.02.2002 and the payment was also made by the licensee with regard to licence fee, though under the Policy of the licence, the petitioner was not obligated to pay the same in view of the opinion formulated by the Excise Commissioner in the case of M/S Kundal Brothers which was accepted by the Finance Department vide Communication No. ET-E/11/98 dated 8th September, 2004, having identical facts. 13. The impugned communication requiring the petitioner to remit penal interest of ₹14.49 lacs in terms of Section 24-A of the J K Liquor Licence and Sales Rules, 1984 can be ordered to be deposited only on non-payment of the licence fee. Since the licence fee had been deposited by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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