BHAGYALAKSHMI WINE STORES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) In all these petitions under Article 226 of the Constitution, the petitioners have sought lor quashing sub-para(c) of para 3 of the Standing Circular No. 141 bearing No. EC1 96/IML/88 dated 19.3.1988 issued by the Excise Commissioner in Karnataka (Respondent 2).

(2.) The petitioners are holders of C.L.2 licence. The contention of the petitioners is that as per the conditions of C.L.2 licence and also as per the provisions contained in the Karnataka Excise Act, 1965 (hereinafter referred to as the Act) and the Karnataka Excise (sale of Indian and Foreign Liquors) Rules, 1968 (hereinafter referred to as the Rules), there is no Rule prohibiting the petitioners to purchase liquor for sale under C.L.2 licence from the wholesale dealer in the other District. Such a condition can only be imposed by the Rules framed by the State Government, but the Excise Commissioner has no power to frame the Rules. Sub- para(c) of Para 3 of the Standing Circular No.141 imposes an additional restriction on a C.L.2. licence holder that he shall draw his entire supplies from the wholesalers located within the District and such a restriction having not been imposed by R.ules, is without the authority of law.

(3.) On the contrary, it is contended on behalf of the respondents that the matter is no more resintegra in as much as this Court in W.Ps. 531 to 536/89 (Sri Srinivasa Wines, Tumkur & Others v Commissioner & Secretary to Govt. & Others) decided on 25-1-1989 has held that sub-para(c) of para 3 of the Standing Circular No. 141 dated 19-3-1988 in question is valid and it does not impose any additional restriction. In addition to this it is contended on behalf of the respondents that the Act vests with the Excise Commissioner with all the powers and makes him Chief Controlling Authority in all matters connected with the administration of the Act. Therefore subject to General and Special Orders of the State Government it becomes the duty of the Excise Commissioner to administer the Act and to see that the objects of the Act are not defeated and the revenue of the State under the Act is also not affected in any manner.