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2014 (3) TMI 673

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..... no intimation relating to drawl of sample has been delivered to the licensee, the seven-day period built into the aforementioned portion of Rule 27(1) of the Rules, commences with the date of receipt of the order of suspension. Moment an order of suspension pending enquiry is passed, appropriate action must be initiated for conducting the enquiry. Enquiry will have to be completed within a time frame of 30 days. If the licensee were to ask for time, it would be a different matter, but any failure on the part of the officials to complete the enquiry in quick time is likely to degenerate into a punitive measure by itself, as was already pointed out. If suspension as a punitive measure is to be imposed upon a licensee, the requirement of providing an opportunity of hearing to him as built in under Section 31 has got to be complied with. Therefore, the respondents shall conclude the entire enquiry within 30 days and based upon their findings, action considered appropriate shall be taken - Decided in favour of assessee. - W. P. No. 4397 of 2014 - - - Dated:- 20-2-2014 - Sri Justice Nooty Ramamohana Rao,JJ. For the Petitioner : Dr. K. Lakshmi Narasimha. For the Respond .....

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..... led that the same is the fermented toddy adulterated with 'Alprozalam'. Hence, the Prohibition Excise Superintendent, Mahaboobnagar passed the impugned order on 03.02.2014, exercising the power available to him under Section 31(1)(b) of the Andhra Pradesh Excise Act, 1968, suspending the licence of the writ petitioner, with immediate effect pending enquiry, in public interest. It is this order dated 03.02.2014, which is challenged in this Writ Petition. Heard Dr. K. Lakshmi Narasimha, learned counsel for the petitioner and learned Assistant Government Pleader for Excise. Dr. Narasimha has raised various contentions including the contention that prior to passing this order on 03.02.2014, the Excise Superintendent has not put the petitioner on notice at all, whereas Section 31 of the Act makes it abundantly clear that no licence shall be cancelled or suspended unless the holder thereof is given an opportunity of making his representation against the action proposed. Hence, Dr. Narasimha would contend that contrary to the specific mandate contained in Section 31 of the Act, the Prohibition Excise Superintendent has not provided any such opportunity before the licence .....

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..... of the writ petitioner under suspension pending enquiry, cannot be declared as illegal only for the reason that there is no specific provision either under the statute or in the Rules framed there under. Power to place a licence under suspension pending enquiry, is a natural, ancillary and an adjunct to the power to grant a licence. What Section 31 of the Act deals with is an issue relating to cancellation or suspension of a licence as a punitive measure. Depending upon the gravity of the circumstances, relating to violation of the conditions of the grant or any of the terms or provisions of the statue or Rules or Regulations on the subject, the licensing authority can appropriately modulate the further action against such licensees. If the violation indulged in by the licensee is either considered to be too grave, or where it is found by the competent authority as not appropriate to allow the licensee to carry on his business any further, in view of the larger public interest, the licensing authority may cancel the licence itself. Sometimes, the circumstances relating to the violations indulged in by the licensee or his nowkarnama holder could be condonable to a certain extent. F .....

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..... ndulged in by the licensee or his nowkarnama holder. Adulteration of toddy cannot be viewed as a minor or insignificant violation of the terms of grant. Adulteration of toddy will have a tell-tale effect and impact on its consumers. Therefore, the State has an objective in preventing any such adulteration from taking place at all. Adulteration of toddy has got to be dealt with, with a firm hand, and hence, in the instant case, I am not in a position to subscribe to the view point canvassed by Dr. Narasimha that there is no warrant for placing the licence of the writ petitioner under suspension. Hence, I do not find any merit in this Writ Petition. But however, there is one aspect which Dr. Narasimha has pointed out. Rule 27 of the Andhra Pradesh Excise (Grant of Licence to Sell Toddy, Conditions of Licenses Tapping of Excise Trees) Rules, 2007, has provided a fairly detailed and exhaustive procedure as to how samples have to be drawn. The most important and relevant part of that Rule reads as under: ........ If the licensee desires that the sample should be sent for analysis to an independent laboratory, he may apply to the Prohibition Excise Superintendent within three ( .....

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..... by issuing necessary circular to all concerned as to the requirement to deliver notice, in writing, of the drawl of sample to the licenses whenever such samples have been drawn in the absence of the licensee or his nowkarnama holder. Hence, the Excise Superintendent, Mahaboobnagar is directed to receive any such request from the writ petitioner for sending the second sample for analysis to any independent laboratory and then, take the report into account and consideration. Moment an order of suspension pending enquiry is passed, appropriate action must be initiated for conducting the enquiry. Enquiry will have to be completed within a time frame of 30 days. If the licensee were to ask for time, it would be a different matter, but any failure on the part of the officials to complete the enquiry in quick time is likely to degenerate into a punitive measure by itself, as was already pointed out. If suspension as a punitive measure is to be imposed upon a licensee, the requirement of providing an opportunity of hearing to him as built in under Section 31 has got to be complied with. Therefore, the respondents shall conclude the entire enquiry within 30 days and based upon their find .....

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