TMI Blog2019 (12) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... bject to the prior approval of the Competent Authority. The expression from one place to another is not restrictive, and does not curtail the power of the Licensing Authority to grant permission for shifting the licensed shop from one region to another in the Union Territory of Puducherry so long as the conditions stipulated by the Excise Act and Excise Rules, as also the conditions for grant of a license are complied with. The shifting should not result in the increase in number of liquor shops beyond the maximum number of licenses which may be fixed for a particular area under Rule 122 of the Excise Rules. In the present case, the Licensing Authority i.e. the Deputy Commissioner (Excise) vide Letter dated 07.06.2018 has granted permission to shift the F.L.1 Licensed premises of the Appellant from Mahe to Karaikal, subject to compliance with the conditions laid down in Rule 209 of the Excise Rules - also it has been informed by the Counsel for the Appellant and the State that all conditions under the Excise Act and Rules have complied with. There are no prohibition in the Excise Act or Rules for shifting the F.L.1 Licensed premises from one place to another. The permiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Madras High Court vide Order dated 07.03.2003 in K. Murali v. Commissioner (Excise)cumSecretary in W.P. (Civil) No. 39661/2002 had interpreted the expression from one place to another in Rules 163 and 209 of the Excise Rules to mean that shifting was permissible only within a particular local area, panchayat or commune, and not from one region to another in the Union Territory. In view of the restrictive meaning of the word place , the Licensing Authority could not grant permission to shift the licensed shop of the Appellant from one region to another i.e. from Mahe to Karaikal, which is at a distance of 650 kilometers. The shifting of liquor shops from one region to another would be in contravention of Rules 163 and 209 of the Excise Rules. 5. Respondent No. 1 and one K. M. Baskar filed W.P. (Civil) Nos. 13081/2017 and 15953/2017 before the Madras High Court for the issuance of a writ of mandamus restraining Respondent No. 2 and 4 Excise Authorities from shifting liquor shops from Mahe to Karaikal. The Madras High Court vide Order dated 26.02.2018 directed the Excise Authorities to consider the objections raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in W.P (Civil) Nos. 11767/2018 and 15661/2018. 14. A division bench of the Madras High Court vide Impugned Judgement and Order dated 14.02.2019 allowed W.P. (Civil) Nos. 11767/2018 and 15661/2018, and quashed the Orders dated 27.03.2018 and 15.06.2018 passed by Respondent No. 3. The permission granted by Respondent No. 2 to 4 to shift the Licensed Shop of the Appellant from Mahe to Karaikal was set aside. The division bench held that the disposal of the representation by Respondent No. 3 Deputy Commissioner (Excise) Karaikal was not in accordance with the Order dated 26.02.2018 passed in W.P. (Civil) Nos. 13081/2017 and 15953/2017. The word / phrase / term place in the Excise Act and Excise Rules had a restrictive meaning. The area defined by Section 2 (22) of the Excise Act was restricted to the area in which the liquor shop was located. The order which permitted shifting of the wholesale liquor shop of the Appellant from Mahe to Karaikal had to be confined to the region of Mahe, and not to Karaikal, which is an entirely different region in the Union Territory of Puducherry. 15. Aggrieved by the Order dated 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trol of inter State Transport of Liquor 22. A. Definitions - In this Chapter, unless there is anything repugnant in the subject or context- (a) Region means any of the regions known as Pondicherry, Karaikal, Mahe and Yanam in the Union territory of Pondicherry. ii) Rule 113 of the Excise Rules provides for the grant of an F.L.1 license for wholesale vending of liquor. CHAPTER VI Sale of Indian or Foreign liquors 113. Licences. - Licences for the sale of Indian liquor or foreign liquor or both shall be of the following descriptions, and shall be granted by the Excise Commissioner or Deputy Commissioner, as the case may be, in accordance with the provisions of subsection (2) of section 14 of the Act, namely:- (1) F.L. 1 Licence:- The holder of this licence shall be permitted to sell foreign liquor or Indian liquor, or both, in quantities of not less than 9 litres in sealed or capsuled bottles 2[***] at any one time and in any single transaction to any other licensee under this chapter and also in sealed or capsuled bottles in quantities not exceeding 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19. The Appellant is the holder of an F.L. 1 License issued by the Licensing Authority viz. the Deputy Commissioner, Excise, Mahe for carrying out vending of IMFL. An F.L.1 Licensee is permitted to sell liquor only to other Licensees, and not in retail. 19.1. The Petitioner was carrying out his wholesale business from MMC, No. 1/40,41 Main Road, Mahe. 19.2. The Appellant filed an Application dated 28.02.2017 for shifting his liquor shop from Mahe to Karaikal under Rules 163 and 209 of the Excise Rules before the Deputy Commissioner, (Excise), Mahe. 19.3. Rule 209 in Chapter XIII of the Excise Rules provides for Shifting of Shops of all license holders, whether wholesale or retail. Rule 209 permits shifting of the liquor shop from one place to another, subject to approval by the Licensing Authority on the terms and conditions contained therein. The proviso to Rule 209 states that the Licensing Authority may permit shifting of the licensed premises, subject to the fulfillment of the conditions of license, and payment of 1/4th of the license fee for such shifting. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e No. Date of Shifting and Order Place of shifting From To 1. M/s Vijayalakshmi Wines L.No. 8/FL1 13.07.1995 vide Order No. 13142/9394/ C2/DC(E) Puducherry Karaikal 2. M/s Vinoth Liquors L. No. 10/ FL1 21.01.2009 vide Memorandum No. 10526/DC(E)/C208 09 Puducherry Karaikal 3. M/s Ding Dong Liquors L. No. 11/ FL1 29.11.2013 vide Order No. 6146/DC(E)/C2/1314 Puducherry Karaikal 4. M/s Apollo Wines L. No. 12/FL1 11.07.2014 vide Order No. 418/DC(E)/2014 Mahe Karaikal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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