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2016 (9) TMI 222

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..... ay, 2002, the date of which the State of Orissa deleted Rule 6-C from the Rules, 1989 and first time the demand was raised only on 27th December, 2002 effectively much after the date of repeal/deletion - Demand after the date of deletion not justified - demand of the alleged shortfall of MGQ dated 27th December, 2002 quashed. - W. P. (C) No. 1781 of 2006 - - - Dated:- 12-7-2016 - Indrajit Mahanty And D. P. Choudhury, JJ. For the Petitioners : M/s. Asim Amitav Das (Sr. Advocate) B.K.Parida, S.A.Pattnaik A.N.Pattanayak For the Opp. Addl. Government Advocate, M/s.Nilambar Jena Kintara Jena ORDER I. Mahanty, J. The short issue that arises for consideration in the present writ application is as to whether repeal .....

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..... sistible conclusion would be that the order passed and demand raised vide Annexure-36 after repeal of a Rule could not invoke the old Rule. 3. The brief facts leading to the present challenge are as follows: A. The State Government framed Orissa Excise (Exclusive Privilege) Foreign Liquor Rules, 1989 under Section 89 of the Bihar Orissa Excise Act, 1915 and published the same on 14.08.1989. B. The petitioners herein applied for and granted licenses by the Collector, Khurda on 15.12.1995 for (i) bottling of portable foreign liquor (ii) for compounding and blending of foreign liquor and (iii) foreign liquor warehouse in or outside bond or wholesale foreign liquor shop for sale to the traders. C. The State Government issued No .....

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..... wholesale trade and distribution of foreign liquor and country liquor in the State shall, on and from such date as the State Government may, by notification, appoint, solely vest in the State Government and subject to such rules as may be made in this behalf, an agency of the State Government as may be specified in the said notification or a Corporation established, or incorporated under the Companies Act, 1956 and wholly owned and controlled by the State Government for the purpose, shall have the exclusive right and privilege of importing, exporting and carrying on the wholesale trade and distribution of foreign liquor and country liquor in the State on behalf of the State Government for the whole of the State of Orissa, and no other pers .....

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..... d by Orissa State Beverage Corporation from the manufacturers of foreign liquor for supply of IMFL and thereafter agreements were entered into by all the manufacturers with the said Corporation for supply of IMFL and more importantly, on and from the said date as noted hereinabove, i.e. 31.01.2001 since the wholesale trade of liquor both the foreign and country liquor were vested into only monopoly wholesaler, known as Orissa State Beverage Corporation (OSBC) effectively from such date, the petitioners-company could not any longer deal with nor supply liquor to any retailer or wholesaler other than the Orissa State Beverages Corporation Ltd. 5. Many bottling plants of foreign liquor and country liquor made representations to the State .....

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..... o force on the date of their publication in the Orissa Gazette. 2. In the Orissa Excise (Exclusive Privilege) Foreign Liquor Rules, 1989, rule 6-C shall be deleted. 6. Insofar as the present lis is concerned, the same arose from a communication of the Superintendent of Excise, Khurda (Opp. Party No.4) dated 27.12.2002 raising a demand on the petitioners-company directing to pay a sum of ₹ 31,06,376.00 as outstanding MGQ dues for the excise year 2001-02 and subsequent thereupon, various representations made by the bottling manufactures to the State Government on 26.04.2003 under Annexure-9 and since no response to the same is received and further since the Superintendent of Excise, Khurda reiterated its demand of shortfall .....

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..... h prior thereto i.e. 31.03.2001, the State Government had created a State monopoly of wholesale trade for distribution of foreign liquors i.e. OSBC. Consequently, with the creation of such monopoly at the instances of the State since the licensees (bottlers) no longer had freedom to sell the wholesale trade or retail trade directly, realizing the issues involved, the State went ahead and repealed Rule 6-C of the Rules, 1989 insofar as deleting the imposition of MGQ of bottling companies is concerned, more particularly, since no demand of the alleged shortfall of MGQ had ever been raised prior to 30th May, 2002, the date of which the State of Orissa deleted Rule 6-C from the Rules, 1989 and first time the demand was raised only on 27th Decem .....

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