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2008 (11) TMI 730

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..... ished for settlement of Excise shops in Kishanganj district. The date of settlement was fixed on 23rd March, 2006. In so far as Group 'ka' shops comprising of six country spirit and three spiced country liquor shops in Kishanganj district were concerned, the settlement could not be effected on that date. Consequently, the Collector, Kishanganj issued a second notification on 17th May, 2006 for settlement of Kishanganj Group 'ka' shops. On 5th June, 2006, Group 'ka' shops of Kishanganj district consisting of six country spirit shops and three spiced country spirit shops, the highest of the petitioner at a monthly licence fee of ₹ 8,29,600/- was accepted. The petitioner claims to have deposited advance security a .....

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..... ') have been framed by the state government. The said Rules have come into force from 1st January, 2005. These Rules are applicable to the grant of licence for exclusive privilege of retail sale of country liquor and spiced country liquor through auction-cum-tender system. 6. After following the procedure of auction, the auctioning authority may either accept the highest bid or tender or any bid or refuse to accept such bid. Once the bid amount is finally accepted, no further negotiation can be entertained by the licencing authority. Rule 16 with regard to acceptance of bid or tender provides thus: 16. Acceptance of bid or tenders - (1) The Auctioning Authority shall not be bound to accept the highest bid .....

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..... , within the prescribed time, the settlement and the licence, if issued, shall stand cancelled and the deposited amount, if any, shall be forfeited to the Government. In such circumstances, a reauction or alternative arrangement shall be made by the Licensing Authority. 9. According to Rule 22, payment of bid money payable by the licensee of the shop or a group of shops for a whole excise year is to be made in twelve equal instalments or as specified in the licence by the licencing authority at the time of issue of the licence. Rule 22 is thus: 22. Payment of bid money in monthly instalments - (1) Payment of the bid money payable by the licensee of the shop or a group of shops for a whole excise year, shall b .....

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..... ders otherwise. The auction-purchaser shall be liable to pay the bid money from the first day of the licence period, even if the licence has been issued thereafter. Provided that if any shop or a group of shops is settled in the midst of the an excise year, the licence shall commence from the date of settlement of the shop or the group of shops. The licensing Authority shall mention details of the shops/licenses to be settled and annual minimum guaranteed quantity to be lifted under those licences and the reserved fee thereof, in the sale notification for every excise year. 11. That group of shops have been settled in favour of the petitioner in the midst of excise year, is not in dispute. It is .....

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..... e licence was issued on 5th July, 2006, the petitioner could not have been fastened with the liability to pay licence fee from 5th June, 2006. It is important to bear in mind that until the licence was issued in favour of the petitioner, the state cannot be said to have parted with exclusive privilege of retail sale in favour of the petitioner. 12. Mr. Vikas Kumar, Junior counsel to the Advocate General would contend that proviso to Rule 24 makes a provision that if any shop or group of shops is/are settled in the midst of excise year, the liability to pay licence fee accrues upon the settle from the date of settlement. We are afraid, the contention of the junior counsel cannot be accepted. A licensee cannot be fastened with .....

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