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2018 (5) TMI 1063 - HC - Indian LawsSurrender of license to sell Liquor - Recovery of 'licence fee' in addition to the 'basic licence fee' consequent to surrender of licence for country made liquor by the petitioner - contention of the learned counsel for the petitioner is that as a result of surrender of such licence all that can be forfeited/ recovered from the petitioner is the basic licence fee and security amount and not the fee payable by him in respect of the ''Monthly Minimum Guaranteed Quantity' - Section 36 of United Provinces Excise Act, 1910. Held that: - the 'fee' for the licence in question as referred in Section 36 of the Act, 1910 comprises of the 'basic licence fee' and a 'licence fee'. The 'licence fee' is the excise duty leviable on the AMGQ which the licensee guarantees to lift for his retail shop during an excise year for the purpose of retail sale. This is a guarantee given by the Licensee at the time of grant of licence and he is bound by it, it being a contractual obligation entered into by him with open eyes. This is in addition to the ''basic licence fee' and is remaining part of the consideration for the licence - MMGQ is nothing but 1/12th part of the AMGQ and the ''monthly installment of licence fee' is nothing but 1/12th of the part of the ''licence fee' in addition to the ''basic licence fee' and is payable every month. This in nutsell is the ''fixed fee system' referred in the long title of the Rules, 2002 and Rule 3 thereof which was accepted by the petitioner while accepting the licence and is the fee referred in Section 36 of the Act, 1910 - Rules 12 and 14 are not attracted in the present case. The petitioner is liable to pay the 'basic licence fee' and 'licence fee' in terms of Section 2(d) and 2(m) of the Rules, 2002 read with Section 36 of the Act, 1910 and Rule 19 of the Rules, 2002, which includes the monthly installment licence fee in respect of MMGQ which was part of AMGQ, which the petitioner had guaranteed to lift at the time of grant of licence and was also very well aware about the said facts - As regards the consequence of surrender of licence and cancellation as far as the State is concerned, they are similar, as, they entail a going back by the licence on the contractual obligation accepted by him. Petition dismissed - decided against petitioner.
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