MASCOT ENTERPRISES Vs. LT GOVERNOR OF DELHI

JUDGEMENT

(1.) This petition arises out of proceedings which had taken place in Civil Writ No. 1403 of 1978. Briefly stated, the circumstances in which the petition comes up for hearing are these.

(2.) The petitioner was a bidder for and was awarded a wholesale dealer's licence, known as L-1 licence for dealing in Indian made foreign liquor for the year 1978-79. It is common case that at the relevant time no Indian made foreign liquor was manufactured within the Union Territory of Delhi. The same used to be imported from distilleries or manufacturers in other States of the country. Inasmuch as there was no manufacture in Delhi a question was raised by the petitioner that no excise duty is payable on the liquor imported into Delhi. This question was raised by filing C.W. No. 1403 of 1978 in this court on 16th December, 1978. Along with the said writ petition an application had been moved for stay of recovery of payment of excise duty. In fact. there were two applications moved and were numbered as C. Ms. 3040 and 3042 of 1978, In the miscellaneous application after notice the following order was passed by H. I.. Anand, J. on January 12, 1979 :

(3.) Learned counsel for the petitioner contends that there was no default regarding payment of the 50 per cent duty and delay cannot be synonymous to default. Re further contends that special duty as envisaged by Ordinance No. 1 of 1979 cannot be regarded as government dues within the meaning of either the terms of the licence or the Excise Act or the Rules framed thereunder. It is also submitted that no interest can be charged on tax as interest on tax or duty in a concept unknown, unless statutorily so provided.