STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL SECR Vs. GRAGE MARTIN DISTILLERY PVT LIMITED, REP BY ITS MA

JUDGEMENT

(1.) The writ appeals are filed by the State against the order of the learned Single Judge dated 15-3-1999 passed in W.P.Nos. 7996 and 8338 of 1998 which were filed by Grag Martin Distillery Private Ltd., Goa, and Swan Distilleries Private Ltd., Goa respectively to quash G.O.Ms.No.166, Revenue (Excise-II) Department, dated 18-3-1998 issued by the Government of Andhra Pradesh and the tender notification dated 20-3-1998 issued by the A.P.Beverages Corporation Ltd., pursuant to the said G.O. The parties in the writ appeals are referred to as arrayed in the writ petitions. The facts that led to the filing of the writ petitions, briefly stated, are as follows: The Government in G.O.Ms. No.166, Revenue (Excise-II) Department, dated 18-3-1998 as the Excise Policy for the year 1997-98 had come to an end by 31-3-1998 issued orders after the submission of the report by a Cabinet Sub-committee for the Excise Year 1998-99, whereunder certain guidelines were issued for the year 1998-99. Among others, under Rule-8 of the G.O., A.P.Beverages Corporation Limited was advised to procure A,B & C categories of liquor from the distilleries located within the State as sufficient production capacity for these categories exists within the State. However, according to the G.O., they may continue to import premium brands i.e., 'D' category. A period of three months may be given for those who would like to establish production facility within any existing distillery or tie up with any local distillery regarding A, B & C categories not manufactured or produced within the State. Pursuant to the said G.O. the 2nd respondent in the writ petitions issued tender notification bearing No.APBCL/98-99/1, dated 20-3-1998 calling for sealed tenders from the local distilleries situated in Andhra Pradesh who are possessing a valid excise licence issued by the 3rd respondent, the Commissioner of Prohibition and Excise, Hyderabad and are willing to enter into contract, agreement with the Corporation for the supply of Indian liquor and Wine of categories A, B & C for the Excise year 1998-99.

(2.) Challenging the said G.O. dated 18-3-1998 and the notification dated 20-3-1998 issued pursuant thereto, the writ petitioners filed the two writ petitions. In the affidavits filed in support of the writ petitions the petitioners submit that the petitioners are the Companies incorporated under the Companies Act, 1956 having the registered office and factories at Goa engaged in the manufacture of Indian Liquor (Brandy, Whisky, Gin, Rum and Vodka) at their plant in Goa and for sale in Goa as well as in the neighboring States of Kerala, Pondicherry and Andhra Pradesh. The petitioner in W.P.No.7996 of 1998, who hold valid licence issued by the Government, participated in the tender notification dated 20-3-1998 and submitted its tender together with Earnest Money Deposit of Rs.50,000.00 for the wholesale supply of liquor or other intoxicants in the State of Andhra Pradesh. The petitioner in W.P.No.8338 of 1998 apprehends that it might be prevented from participating at the threshold itself that in view of the fact that the tender form issued to the persons from outside the State like him clearly stipulates that it is only for supply of 'D' category Indian Made Foreign Liquor (IMFL) (Premium) category and Beer. The writ petitioner in W.P.No.8338 of 1998 was not even given a tender form for the other categories by the 2nd respondent and cannot participate in view of the restriction imposed by the orders dated 18-3-1998 and the notification dated 20-3-1998. The writ petitioner in W.P.No.7996 of 1998 was participated in the tender for the supply of Indian liquor floated by the 2nd respondent in the previous year i.e., 1997-98, which was accepted by the 2nd respondent and the orders placed were duly executed by the petitioner.

(3.) The petitioners submit that in terms of Sec. 17 of the A.P. Excise Act (for short the "Act") the Government can grant to any person the exclusive privilege of manufacturing or of supplying by wholesale or of selling any liquor or other intoxicants within such area in the State. In terms thereof the Government has granted the exclusive privilege for procuring in wholesale to the 2nd respondent and accordingly the 2nd respondent has been procuring the Indian liquor by floating tenders. While matters stood thus, by G.O.Ms.No. 166, dated 18-3-1998 the 1st respondent has advised about the Excise Policy for the year 1998-99. To repeat, that in terms of Clause-8 of the said order the 2nd respondent has been directed to procure A,B & C categories liquor from the distilleries located within the State as these purportedly exists sufficient production capacity for these categories within the State. However, the 2nd respondent has been advised to continue to import premium brands i.e., 'D' category. It has also been stated that a period of about three months may be given for those who would like to establish production facility within any existing distillery or tie-up with any local distillery regarding A,B and C categories not manufactured or produced within the State. As stated supra pursuant to this the 2nd respondent has issued tender notification dated 20-3-1998 calling for sealed tenders from the local distilleries situated in Andhra Pradesh who are possessing a valid excise licence issued by the 3rd respondent and are willing to enter into contract, agreement with the Corporation for the supply of Indian liquor and wine of categories A,B and C for the excise year 1998-99. The petitioners aver that though they hold licence issued by the Government and has been successful bidder in the tender floated for the year 1997-98 by the 2nd respondent, they will not be able to participate in the tender due to the G.O.Ms.No.166, dated 18-3-98 and the subsequent notification of the 2nd respondent, dated 20-3-98 since they do not have a distillery located in the State of A.P. The petitioners, therefore, apprehending that in view of Clause-8 of G.O.Ms.No.166, dated 18-3-1998 and the condition imposed in the tender notification dated 20-3-1998 and that since they have the distillery situated in the State of Goa and not in the State of Andhra Pradesh their licence will be rejected, filed the writ petitions.