9911796707
TMI Blog2023 (12) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... vided that the person collecting tax on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Section shall, after paying the tax collected to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority, or the person authorised by such authority, such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed. As per Sub Section (7) to Section 206C a person responsible for collecting tax failing to pay tax to the credit of the Central Government on or before the date specified, either after collecting the tax or fails to collect tax, shall be liable to pay simple interest at the rate of 1% per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid or payable and such interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3). In absence of definition for the expression mechanical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of the Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003. No waste or scrap was generated by the petitioner for it to be sold by the petitioner. Scrap, if any, was generated at the licensed premises which was leased by the licensees from the provide owners of the premises. Left over bottles after consumption are not owned by the petitioner. Neither the petitioner nor the licensee are the owner of the waste bottles. What the respective bar licensees are permitted under the terms of the license under the provisions of the Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003 is merely to sell food and water and clear the left over bottles more from the point of view of ensuring cleanliness. The bar owners incidentally monetize the left over bottles. Rule 9(a) of the Tamil Nadu Liquor Retail Vending (In Shops and Bars) Rules, 2003 merely grants privilege to the respective bar owners only to run the bars to sell the eatables and to clear left over empty bottles. Bottles are neither Scrap nor a property of either the TASMAC or Bar Licensee. Ownership over the bottles at best would stand vested with the respective bar owners / licensees who have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tical relief. 2. In these Writ Petitions, the Petitioner has prayed that this Court may be pleased to issue a WRIT OF CERTIORARI to call for the records on the file of the Respondent in the Impugned Orders dated 30.05.2023 in TAN : CHET07317C bearing DIN No: CHE/CT/153/1/30052023/00111 passed under Section 206C/206C (6A)/206C (7) of the Act for the Assessment years between 2016-2017 and 2023-2024 and quash the same. 3. The petitioner has also prayed for interim stay of all further proceedings including recovery and penalty u/s.271CA of the Act pursuant to the Impugned Orders in DIN No: CHE/CT/153/1/30052023/00111 passed under Section 206C/206C (6A)/206C (7) of the Act dated 30.05.2023 for these Assessment years. 4. The impugned orders have been passed by the respondent under Section 206C, Section 206C(6A) and under Section 206C(7) of the Income Tax Act, 1961 seeking to impose tax. Provision Failure 1 Section 206C(1) Not collecting income-tax at the rate of one per cent from the buyer 2 Section 206CC Not furnishing Permanent Account number by 'collectee' 3 Section 206CCA Not furnishing the return of income for the assessment year preceding the financial year in which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides for the term "buyer". 3.1. Buyer means a person who obtains in any sale, by way of auction, tender or any other mode TASMAC bar contractors have obtained the right to sell eatables and to collect and sell empty bottles only through tenders. It is explicitly clear that bar contractors who get the benefit of collecting empty bottles are buyers in lieu of rights given to them by the seller, that is, TASMAC. 3.2. Goods of the nature specified in the Table in subsection (1) or the right to receive any such goods. By winning the tender through the bidding process, the bar contractor gets the right, inter alia, to collect and sell the empty bottles. 3.3. Buyer does not include a buyer in the retail sale of such goods purchased by him for personal consumption There is an implicit understanding that empty bottles are sold by the successful bidder and are not used for personal consumption. The successful bidder collects the empty bottles and sells them to certain vendors who ultimately sell them back to the distilleries and breweries. Additionally, the successful bidder gets the inherent right to purchase empty bottles only by way of tendering process and obtains the goods in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Act, 1961. 11. The supplementary issue that arises for consideration is whether for the Assessment Years 2018-2019 to 2023-24, the petitioner was also liable to pay tax at 5% under 206CC of the Income Tax Act, 1961 and whether for the Assessment Years 2022-23 and 2023-24, the petitioner is also liable to pay tax under Section 206CCA of the Income Tax Act, 1961? 12. The petitioner is a company incorporated under the provisions of the Companies Act, 1956 in the year 1981. It is wholly owned by the Government of Tamil Nadu. It is a statutory body which under Section 17-C (1-B) of the Tamil Nadu Prohibition Act, 1937 has been given an exclusive monopoly not only to control and effect wholesale, but also retail sale of Indian Made Foreign Spirits (IMFS) in the entire state of Tamil Nadu. 13. Wholesale and retail business is being carried out by the petitioner since 2003, pursuant to Tamil Nadu Prohibition Amendment Ordinance 08.01.2003 issued under Article 213 of the Constitution of India, pursuant to which Section 17-C (1-A) was inserted in the Tamil Nadu Prohibition Act, 1937. 14. The petitioner has been vested with the special and exclusive privilege of effecting wholesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be granted one. Despite such restrictions, people could however travel to areas within the Presidency where the Prohibition was not in force for consumption of liquors. 90. A system was also devised to regulate licensed clubs for sale and consumption of wine for religious purposes in Churches and brandy in Hospital for Medical purposes. Licenses were also given for toddy tapping as it was accepted then. 91. A reading of the pre-amble of the Tamil Nadu Prohibition Act, 1937 makes it clear that the Act is in consonance with the Directive Principle of State Policy under Article 47 of the Constitution of India which enjoins State to endeavour to take steps to bring about a prohibition of intoxicating drinks and drugs which are injurious to health. 92. In 1971-72, prohibition was briefly lifted for the 1st time. The sale of liquor and toddy through shops were thrown open to the public with the enactment of Tamil Nadu Prohibition (Suspension of Operation) Act, 1971. 93. The operation of the provisions of the Tamil Nadu Prohibition Act, 1937 was suspended with the enactment of Tamil Nadu Prohibition (Suspension of Operation) Act, 1971. The prohibition imposed was however short li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment of Tamil Nadu decided as a policy to give Bar licence to the retail shops in order to augment revenue from auctions of retail shops. 103. The then existing Tamil Nadu Liquor (Licence and Permit) Rules, 1981 was later repealed to facilitate the retail vending of IMFL and Beer in Bar. This change in policy was notified before the auction for the year 1992-93 stating only retail vendors will be eligible for Bar licences. 104. By G.O.Ms.No.99, Prohibition and Excise Department, dated 26th May, 1992, the Government of Tamil Nadu introduced the Tamil Nadu Liquor (Retail Vending in Bar) Rules, 1992 for regulating the issue of licence and the privilege of retail vending of liquor in the Bar. The Rules came into force on 1st June, 1992. 105. Under rule 4(a) of the aforesaid Rules, a person holding a licence granted under Rules 13 of Retail Vending Rules, 1989 was allowed to file an application for grant of privilege and licence for retail vending of liquor in the Bar. These bars are different from the bars attached to the hotels to whom licences are issued under the provisions of the Tamil Nadu Liquor (License & Permit) Rules,1981. 106. In 1993, G.O.Ms.No.44, Prohibition and E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... license and privileges were given to private persons to run wine shops & bars… 128.. In 2003, when Section 17-C (1-B) was introduced from the Tamil Nadu Prohibition Act, 1937 along and Section 22-D to the Tamil Nadu Prohibition Act, 1937, Section 4A was however not amended. As a result of above amendment, retail sale of liquor was also exclusively given to the respondents TASMAC. 129. In 2003, when Respondents TASMAC thus took over the business of retail business in the sale of liquor in the State with the insertion of Section 17-C (1-B), TASMAC became State monopoly. The then existing Tamil Nadu Liquor (Retail Vending) Rules, 1989 and Tamil Nadu Liquor (Retail Vending in Bar) Rules, 2000, were repealed. 16. It was further observed in S. Jagannathan,supra, as follows:- 133. Sub Clause (1-A) and Section 17-C (1-B) of the Tamil Nadu Prohibition Act, 1937 which were inserted in the Act, merely allows TASMAC to do "wholesale" and "retail business", does not permit respondents TASMAC a right to confer privilege to a 3rd parties to render allied business of selling short eats and/ or support service to collect used bottle from premises used as a bar. If the Act does not per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the consumers to consume the liquor/alcohol purchased from the TASMAC Shops. 141. Instead, the respondents TASMAC has over a period of time encouraged the owners of the leased premises (which some times happens to be the Local and Municipal Authority) to develop the area adjacent to the leased retail shop as "a Bar" for being leased to the licencee's facilitate the buyers of liquor to consume the liquor/Alcohol purchased from the TASMAC Shops. 142. The purported exercise of auctioning rights under the impugned Tender Notifications as explained as having been issued under Rule 9A of the Tamil Nadu Liquor Retail Vending (In Shops and Bars), Rule 2003 cannot be countenanced under Rule 9A. 143. Rule 9A which was inserted to the Rules only in the year 2013 vide G.O.Ms.No.20, Home P & E dated 29.3.2013 reads as under: "Rule 9-A.Grant of Privilege to run the bar:The privilege of running bars may be granted to private parties by tender. The Board of the Corporation may decide the upset price and other terms and conditions of tender, from time to time, with the prior approval of the Commissioner of Probation and Excise. The Corporation, as agency shall collect the tender amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enience. Bar licenses are auctioned by the petitioner under the provisions of Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003. 20. For instance, the Board of petitioner vide Circular Resolution No.40/2019 dated 13.09.2019 resolved to approve the following proposals to call for tender under new a formula with effect from 01.10.2019. It reads as follows:- "All the District Managers may be directed to call fresh tender during the month of September 2019 for granting permission to sell eatables and to collect empty bottles in the bars attached to the Retail Vending shops, as per below mentioned terms and conditions. a) The upset prices should be fixed at the rate of 1.80% of average monthly sales of last financial year (2018-19) for the bars attached to the concerned Retail Vending shops located in Corporation & Municipality areas. b) The upset prices should be fixed at the rate of 1.60% of average monthly sales of last financial year (2018-190 for the bars attached to the concerned Retail Vending shops located in Town Panchayat areas. c) The upset prices should be fixed at the rate of 1.40% of average monthly sales of last financial year (2018-190 for the bar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ASMAC in his reference 4th cited has requested the Commissioner of Prohibition and Excise to approve the above New formula fixed by the board of TASMAC conditions, enclosing the copy of Board resolution as approved by the Board." 21. Upset price that is fixed by the petitioner for a person to offer a bid is on a fixed percentage of the retail sales made from the retail outlet. The upset price has varied from 1.4% to 1.80% of the average monthly sales of the previous Financial Year 2018-2019 from the retail vending shops of the petitioner allotted in the Corporation, Municipality or Panchayat areas. The successful bidder was required to pay 1% fee to the petitioner as agency commission and 99% to the Government. 22. Bar licenses are granted to licensees to sell eatables and for collection of empty bottles left by consumers. By the bar license, the bar licensees are entitled to monetise the left over bottles by consumers. Bar license is given as per Rule 9A of the Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003. 23. The petitioner as an agency merely collects the tender amount from the successful tenderer and remits the same to the Government on or before 25th dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uor shop to which a particular bar is attached. Bar licensees give two Demand Drafts to the petitioner TASMAC. For the services rendered by the petitioner TASMAC, 1% of the total license fee is retained by the petitioner TASMAC as its service charges (Agency commission) and balance 99% of the license fee is directly paid to the State Government. 25. This 1% of the fee retained is offered to income tax. Thus, there is clear split up of the license fee into 99% in favour of the Government and 1% in its favour as clarified by G.O.Ms.No.20 Home Prohibition and Excise (VI) department dated 29.03.2013. 26. It is submitted by the learned counsel for the petitioner that the Respondent's reasoning and conclusion in the impugned order that the empty bottles left over by the consumers in the bar clearly qualify as scrap arising from mechanical working of materials is incorrect and is as such erroneous. 27.It is submitted that the petitioner is not engaged in manufacture or generation of waste from mechanical working of materials from which scrap has arisen. It is submitted that the petitioner is merely selling liquor in its retail shops. The empty liquor bottles left by the consumers are i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to change its shape, properties or structure. 33. It is further submitted by the petitioner that the understanding of the Respondent that the process of opening the bottled liquor is nothing but a mechanical process is absurd and unsustainable in law. 34. It is submitted by the petitioner that the Respondent's reasoning and conclusion in the impugned order that the petitioner TASMAC has satisfied the conditions of a "seller" of scrap to the winning bidders through the process of tendering is erroneous. 35. It is submitted that the Petitioner only sells bottled liquor procured from distilleries and breweries to ultimate customers through its retail shops and that there is no sale of empty bottles by the petitioner to the licensed bar owners. It is further submitted that the price of bottles is included in the sale price of the liquor and on the total price of bottled liquor. VAT (Value Added Tax) is paid and therefore, there is no question of separate sale of empty bottles by the Petitioner to the licensed bar owners. 36. It is further submitted that it is very clear that empty bottles are collected by the Bar contractors and sold by them in their own right and name and the sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m "buyer" is unsustainable in law. 41. It is submitted by the petitioner that the Respondent's reasoning and conclusion in the impugned order that TCS need to be collected on the entire 100% of tender amounts at the time of receipt of such amounts is erroneous. 42. It is submitted that the Petitioner was solely collecting the license fee from bar contractors/licensees for the license by granting them permission to run the bars and passing it on to State Government of Tamil Nadu and that the amounts collected were not liable to service tax as it was only a devolution of the sovereign rights vested in it by the State. 43. It is further submitted that once the petitioner has paid Service Tax on the 1% of the Agency Commission, the same can be in no stretch of imagination or logic treated as sale consideration for empty bottles. 44. It is submitted by the respondent that TASMAC calls for tenders to operate bars adjoining the TASMAC retail outlets. It is further submitted that as per the tender documents and the conditions stipulated therein, the benefits assigned to the winning bidders are only for the sale of eatables and the collection of empty bottles. It is further submitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is bound by that declaration. 52.The counsel for the respondents also submitted that Navine Fluorine International Ltd. vs. ACIT, supra, is not applicable in this case because it is highlighted that there is a mechanical working when the liquor bottle is opened. 53.It is further submitted that the case of CIT vs. Priya Blue Industries Pvt. Ltd, supra,is not applicable to the present case under discussion since the scraps in question were usable items and thus do not fall within the purview of Section 206C. 54. It is submitted by the learned counsel for the respondent that there is no condition stipulated in the G.O. dated 29.03.2013 directing TASMAC to collect 99% of license fee favouring the State Government separately and, therefore, it is the responsibility of TASMAC only to collect the entire tender amount and remit the same to the government. It is further submitted that the liability to collect TCS on the entire license rests on TASMAC. 55. It is submitted by the respondent that it is well settled that in cases involving fiscal nature, availing of statutory appellate remedy has to be first exhausted and the party cannot come directly to the Hon'ble High Court and file a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to recover tax by collection under sub-section (1) shall be without prejudice to any other mode of recovery. (2) Any person collecting any amount under sub-section (1) shall pay within seven days the amount so collected to the credit of the Central Government or as the Board directs. (3) Any amount collected in accordance with the provisions of this section and paid under sub-section (3) shall be deemed as payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to him for the amount so collected on the production of the certificate furnished under sub-section (5) in the assessment made under this Act for the assessment year for which such income is assessable. (4) Every person collecting tax in accordance with the provisions of this section shall within ten days from the date of debit or receipt of the amount furnish to the buyer to whose account such amount is debited or from whom such payment is received, a certificate to the effect that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected and such other particulars as may be prescribed. (5) Any person responsible for collec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (1). Explanation. --For the purposes of this section, "seller" means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company. 60. CBDT (Central Board of Direct Taxes) Circular No. 525, dated 24.11.1998 had clarified the object of Section 206C of the Income Tax Act, 1961. It reads as under:- Considerable difficulty has been felt in the past in assessing income of persons who take contracts for sale of liquor, forest produce, etc. It has been the Department's experience that for taking such contracts, firms or associations of persons are specifically constituted and very often no trace is left of them or their members after the contract has been executed. Persons have also been found to have taken contracts in "benami" names by floating undertakings or associations for short periods. Since tax is payable in the assessment years on the incomes of the previous years, the time by which the incomes from such sources become assessable, such persons become untraceable. Moreover, at the time of assessment years in these cases, either the accounts are not availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, he shall be liable to pay simple interest at the rate of one per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3): Provided that in case any person responsible for collecting tax in accordance with the provisions of this section, fails to collect the whole or any part of the tax on the amount received from a buyer or licensee or lessee or on the amount debited to the account of the buyer or licensee or lessee but is not deemed to be an assessee in default under the first proviso of sub-section (6A), the interest shall be payable from the date on which such tax was collectible to the date of furnishing of return of income by such buyer or licensee or lessee: 62. The expression 'Scrap' for the purpose of Sl.No.6 to table to Sub Section (1) has been defined in Explanation clause (b). Explanation (b) to Section 206C of the Income Tax Act, 1961 reads as under:- "Section 206C:Profits and gains from the business of trading in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax: 67. Under Sub-Section (7) to Section 206C of the Income Tax Act, 1961, where a person responsible for collecting tax fails to collect it in accordance with Section 206C(1) of the Income Tax Act, 1961, shall be liable to pay tax to the credit of the Central Government in accordance with the provisions of Sub Section (3). 68. As per Sub-Section (3) to Section 206C of the Income Tax Act, 1961, any person collecting any amount under this Section shall pay within the prescribed time the amount so collected to the credit of the Central Government or as the Board directs. Provided that the person collecting tax on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Section shall, after paying the tax collected to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority, or the person authorised by such authority, such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed. 69. As per Sub Section (7) to Section 206C of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing two rates, namely:-- (i) at twice the rate specified in the relevant provision of the Act; or (ii)at the rate of five per cent: [Provided that the rate of tax collection at source under this section shall not exceed twenty per cent.] (2) If the provisions of section 206CC is applicable to a specified person, in addition to the provisions of this section, the tax shall be collected at higher of the two rates provided in this section and in section 206CC. (3) For the purposes of this section "specified person" means a person who has not furnished the return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be collected, for which the time limit for furnishing the return of income under sub-section (1) of section 139 has expired and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in the said previous year… Thus, for Assessment Years 2022-23 and 2023-24, tax has been assessed under Section 206CCA of the Income Tax Act, 1961. 73. As per sub-clause (1) of Section 206C of the Income Tax Act, 1961, every seller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing,-- (a) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or (b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure;] 79. The expression "mechanical working of materials" in the definition of " scrap" in clause to explanation (b) to Section 206(c) has not been defined separately. 80. The Hon'ble Supreme Court had an occasion to deal with a similar occasion in the context of Central Excise Act, 1944 in Commissioner of Central Excise, Cochin Vs. Appollo Tyres, [2005] (184) ELT 115 (SC). There, Chapter Note 6 to Section XV of Central Excise Tariff Act, 1985 was referred to. It reads as follows:- "8.The respondents went in appeal to CEGAT. CEGAT has by the impugned judgment held that these products were to be classifiable under Tariff Item 4004. CEGAT has so held without at all considering the composition of the products. CEGAT has so held only on the basis of Chapter Note 6 to Chapter 40 which reads as follows: "6. For the purposes of Heading 40.04, the expression 'waste, parings a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied the product. 11. Accordingly, the impugned Judgment is set aside and that of the Collector (Appeals) is restored. The Appeals stand disposed of accordingly. There will be no order as to costs." 81. In Grasim Industries Limited Vs. Union of India, [2011] 10 SCC 653, the Hon'ble Supreme Court was concerned with MS scrap and iron scrap generated in a workshop. The court held that Section Note 8(a) to Section XV of the Central Excise Tariff Act, 1985 has a very limited purpose of extending coverage to the particular items of the relevant tariff entry in the Schedule for determining the applicable rate of duty and it cannot be readily construed to have any deeming effect in relation to the process of manufacture as is contemplated by Section 2(f) of the Central Exercise Act, 1944 unless expressly mentioned in the said Section Note. 82. Both manufacture and "mechanical working of material" can generate "scrap". Although, an activity may not amount to "manufacture" yet waste and scrap can be generated from "mechanical working of material". 83. The definition of "manufacture" in Section 2(f) of the Central Excise Act,1944 was expanded in 2003 with effect from 01.03.2003 vide Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principle of nocitur a sociis, provides that words and expression must take colour from words with which they are associated. 92. In absence of definition for the expression "mechanical working of materials" in Section 206C of the Income Tax Act, 1961, the above doctrine of nocitur a sociis can be usefully applied to the facts of the case to resolve the legal conundrum. Court is faced with. 93. The meaning of the expression "mechanical working of materials" in Section 206C of the Income Tax Act, 1961 can therefore to be gathered by applying the doctrine of noscitur a sociis from the meaning of the expression "manufacture" in Section 2(29BA) of the Income Tax Act, 1961. 94. The definition of the expression "manufacture" in Section 2(29BA) of the Income Tax Act, 1961 is similar to the definition of "manufacture" in Section 2(f) of the Central Excise Act, 1944. Therefore, for a "waste" or a "scrap" to be liable to excise duty under Section 3 of the Central Excise Act, 1944, such "waste" or "scrap" was also to be specified in the 1st Schedule to Central Excise Tariff Act, 1985. 95. Certain activity may amount to "manufacture" yet not liable to Central Exercise Duty. An activity may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d water and clear the left over bottles more from the point of view of ensuring cleanliness. The bar owners incidentally monetize the left over boittles. 103. Rule 9(a) of the Tamil Nadu Liquor Retail Vending (In Shops and Bars) Rules, 2003 merely grants privilege to the respective bar owners only to run the bars to sell the eatables and to clear left over empty bottles. Bottles are neither "Scrap" nor a property of either the TASMAC or Bar Licensee. 104. If at all, the ownership over the bottles at best would stand vested with the respective bar owners / licensees who have been licensed. Sale of left over bottles are merely regulated. Mere regulation of such sale would not render the petitioner sale of bottles A mere privilege is conferred on the respective bar owners / licensees to collect the left over bottles and sell them to the breweries and distilleries. There is no scope to conclude sale bottles by the petitioners to the respective bar owners / licensees. 105. To be a "seller" of used bottle, the petitioner should be the owner of the bottle. Neither the petitioner nor the Bar owners / licensees are the owners of the bottles left behind in the licensed premises (Bar). 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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