1975 (1) TMI 89 - SC - Customs

Demands for the payment of Fixed Fees made on vendors of ,Foreign Liquor holding licences in Forms L-3, L-4 and L-5 challenged on the ground that they were contrary to the terms of Rule 12 and therefore illegal.

Held that:- Under Rule 11, applications for renewal of licences for the following year have to be made before .the end of October' By Rule 12 the Excise Inspector has to lay before the Collector by the 7th January each year a.list of licences requiring renewal, together with a certificate of sales as provided by rule 30, to facilitate the determination of assessed fee. No order for renewal can be made after January 20 in respect of licences to be valid for the following financial year, except with the special sanction of the Financial Commissioner. The appellants holding licences for sale of Foreign Liquor applied duly for renewal of their licences any orders granting renewals were passed before January 20. Later the Rules were amended on March 22 and March 30, 1968 under which the appellants holding licences in Form Nos. L-3, L-4 and L-5 became liable to pay fixed fees up to ₹ 20,000 per annum in addition to fees assessed under rule 31. The grievance of those appellants is that since their licences were renewed in January 1968, the amendments made in March 1968 cannot apply to them and therefore the ,demand made on the basis of amended rules is illegal.

It is true that the amendments under which the appellants have been called upon to pay fixed fees were made after the licences were renewed. But the licences, though renewed in January 1968, were lo be effective from April 1, 1968. The amendments having come into force before April 1 would govern the appellants' licences and they are, therefore, liable to pay the fixed fees under the amended Rules. The payments due from the' appellants holding licences in Form L-14A are also due to the Government on account of any contract relating to the excise revenue" as provided in section 60(1)(c) of the Act. It is therefore open to the Government to recover its dues in the manner authorized by section 60. Appeal dismissed.