T RAMESH BABU Vs. STATE OF KERALA

JUDGEMENT

(1.) Constitutional validity of the Kerala Liquor Transit (Amendment) Rules 2005 imposing enhanced fee for transit of liquor through the State of Kerala to Mahe alone, a part of the Union Territory of Pondicherry is under challenge in these appeals as discriminatory and offending free trade and commerce through out the territory of India.

(2.) Petitioners are engaged in the trade of liquor through various retail shops at Mahe, a part of Union Territory of Pondicherry. Government of Pondicherry in exercise of its powers conferred under Rule 113(1) framed under the Pondicherry Excise Act, 1970 have issued necessary licences for possession and sale of Indian made foreign liquors/foreign liquors and beer in the town of Mahe, which falls under the administration of Government of Pondicherry. Licence permits the licensees to import all kinds of Indian liquor or foreign liquors and beer from outside and also from the manufacturers of the Union Territory of Pondicherry after obtaining a permit issued by the Licensing Authority of the Government of Pondicherry.

(3.) Transit Permit was not earlier necessary for transporting liquor from the Kerala State to another State. During the year 1989 Kerala State had insisted for transit permits for transporting liquor to Mahe through the State of Kerala. Series of writ petitions were preferred before this Court questioning the imposition of the transit fee which were disposed of by a Division Bench, the judgment is reported in Perumal Wines v. State of Kerala, 1989 (2) KLT 924 = 1990(1) ILR (Ker.) 634. The Bench had taken the view that if liquor is transported from Karnataka State to Mahe, or from Tamil Nadu, Punjab, Maharashtra, Goa, West Bengal etc. to Mahe, even though the liquor has to pass through Kerala State before it reaches Mahe, no transit permit is required under the Act and the Rules, for, there is no movement from one State to the same State, as Mahe is in a different State, the Union Territory of Pondicherry, but when liquor is transported from Pondicherry to Mahe, both within the Union Territory of Pondicherry, that liquor passing through Kerala State required a transit permit.