JOHNY Vs. EXCISE INSPECTOR

JUDGEMENT

(1.) The question that has come up for consideration in these cases is whether the department is justified in demanding additional rental of Rs. 25,000/- from the petitioners in accordance with the proviso to R.13(3) of the Foreign Liquor Rules.

(2.) Petitioners were having FL 3 licence and were conducting Bar Hotels. FL 3 licence in respect of petitioner in OP. 7082/94 expired on 31.3.94. Petitioner vide his letter dated 17.3.1994 requested the excise authority to issue countersigned challan to enable the petitioner to remit licence fee. The countersigned challan was not issued by the first respondent till 12.4.94. On receipt of the said challan petitioner remitted the requisite licence fee of Rs. 5 lakhs on 13.4.94. On 26.4.95 excise authority issued a notice to the petitioner demanding an amount of Rs. 25,000/- towards late fee. According to the petitioner, respondents have no legal right to demand Rs. 25,000/- towards late fee for the delay in remitting the amount. In any view of the matter counsel submitted that the delay is on the part of the department and not on the part of the petitioner in remitting the amount.

(3.) Petitioner in OP. 6809/94 is also running a Bar Hotel. Period of licence expired on 31.3.94. According to the petitioner, he submitted necessary challan before the authority on 29.3.94 for counter signing. He received the same only in the afternoon of 31.3.94. Petitioner therefore could not remit the amount on 31.3.94. On 1.4.94 was a holiday. 2.4.94 was also a holiday for the bank. 3.4.94 was Sunday and therefore, petitioner could remit the amount only on 4.4.94. Petitioner remitted an amount of Rs. 5 lakhs on 4.4.94. Petitioner could not conduct the shop from 1.4.94 to 4.4.94. However, he remitted the entire amount of Rs. 5 lakhs. But he was served notice to pay Rs. 25,000/- as pre-condition for renewing the licence. Petitioner is aggrieved by the said demand and has approached this Court.