STATE OF MAHARASHTRA Vs. NAGPUR DISTILLERS NAGPUR

JUDGEMENT

(1.) Leave granted.

(2.) This appeal by the State of Maharashtra and the Officers of the State Excise Department challenges an interim order passed by the Division Bench of the High Court of Bombay, Nagpur Bench, in a Writ Petition filed by the respondents herein. Respondent No.1 is a partnership firm and respondent No.2 is a partner therof. Respondent No.1 is engaged in the business of manufacture and sale of Indian made foreign liquor (hereinafter described as "IMFL") and holder of a wholesale licence under the State Government in Form PLL as per the Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules, 1966. The said Rules are made under the Bombay Prohibition Act, 1949. Respondent No.1 did not own a distillery and was not manufacturing rectified spirit and extra neutral alcohol which it required for manufacture of IMFL. Respondent No. 1 had to purchase rectified spirit and extra neutral alcohol from distilleries owned by others. For possession and use of rectified spirit including the extra neutral alcohol, license was required in Form R.S.II prescribed under the Bombay Rectified Spirit Rules, 1951. The manufacture and sale of IMFL is supposed to take place under the supervision of the staff of the State Excise Department as provided in Rule 12(2) of the Bombay Rectified Spirit Rules, 1951. As per Rule 17(12) of the Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules, 1966 and as per condition No. 1 of the PLL license obtained thereunder, Respondent No.1 as licensee, had to pay the cost of the supervisory staff to the State in terms of Section 58A of the Bombay Prohibition Act.

(3.) As it is elsewhere, in the State of Maharashtra also, under Section 12 of the Bombay Prohibition Act, manufacture of liquor, construction or working of a distillery or brewery, import, export, transport, possession, sale or purchase of liquor are banned. Though, under Section 13 of the Act, the bottling of liquor for sale, consumption or use of liquor is prohibited; under Section 11, the State has taken upon itself the right to permit any of the aforesaid activities in the manner and to the extent provided for, by the provisions of the Act or any Rules, Regulations or Orders made in that behalf. Under Section 49 of the Act, the State has the exclusive privilege of importing, exporting, transporting, manufacturing, bottling, selling, buying, possessing or using any intoxicant. For consideration, the State farms out the right to the concerned licensee. The State has made rules in terms of Section 143 of the Act prescribing fees including rent or consideration payable in respect of any privilege, license, permit, pass or authorization granted or issued under the Act.