K SRIDHARAN Vs. EXCISE COMMISSIONER COMMISSIONERATE OF EXCISE

JUDGEMENT

(1.) The issue raised for consideration in these writ petitions is with regard to compounding of an offence of mixing of starch with toddy. The parties and documents are being referred to in this judgment as arrayed in W.P(C).No.3969 of 2018 which is taken as the leading case.

(2.) The petitioner was a licencee of toddy shop Nos.11, 14, 15, 16, 17 and 26 of Group No.111 in Vadakara range for the period upto 31.3.2018. It is submitted that a crime and occurrence report dated 15.8.2017 had been registered against the petitioner. It is stated that a sample of toddy taken from the petitioner's shop on 15.4.2017 revealed the presence of starch mixed with toddy. It is stated that Exhibits P16 and P17 applications preferred by an employee in the shop of the petitioner had been rejected and Exhibit P14 order of cancellation of licence in respect of the toddy shops had been issued on 1.1.2018 on the allegation that the toddy had been found to be adulterated with foreign material. Exhibit P15 order directing resale of the shops was also issued which is under challenge in the writ petition.

(3.) The contention of the learned Senior Counsel for the petitioner is that the mixing of starch with toddy is a minor offence and cannot entail cancellation of licence in terms of Section 26 of the Abkari Act (for short, 'the Act'). It is stated that by the amendment brought about in Sections 57(a) and 67A of the Act, the mixing of starch with toddy, even if such mixing is admitted, has been made a minor offence by taking it out of the ambit of the more serious offences. Compounding is also enabled in such cases after the amendment. It is therefore contended that even though the offence in these cases was committed before the amendment to Section 57(a) and Section 67A of the Act, the application preferred for compounding is liable to be considered and the cancellation of licence is completely unjustified and illegal.