STATE OF KARNATAKA Vs. V S NARAYANASWAMY

JUDGEMENT

(1.) The appeal is by special leave. Challenge is to the judgment of the Karnataka High Court declaring R. 8(1) of the Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968 in so far as it relates to levy of licence fee for retail vending of authorised Indian and foreign liquors and directing refund of such levy collected within three years prior to 2-8-1971 when the writ petition was filed.

(2.) Respondent, an excise contractor, had taken in auction the exclusive privilege to sell liquors in retail at an approved shop premises. He was issued the appropriate licence under the provisions of the law on payment of licence fee in terms of Item 2 of R. 8(1) of the aforesaid Rules. Respondent filed a writ petition before the Karnataka High Court challenging the vires of S. 23(d) of the Mysore Excise Act, 1965 (hereafter 'Act' for short) and R. 8(1) as being beyond the legislative competence of the State Legislature. The High Court did not accept the contention of the respondent in regard to S. 23 but held that R. 8(1) authorising the levy of a licence fee for the retail off shop was without authority of law.

(3.) Section 23(d), as far as relevant, provides: