P HANUMANTH GOUD Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The point involved in these two writ petitions being one and the same and the facts being similar.it is convenient to dispose of them by a common judgment, Suffice to state the facts, in W.P.No. 357/73. The petitioner, being the highest bidder for Rajahmundry Kakinada and Peddapuram group of arrack shops for the year 1972-73, agreed to have the supply of 2,48,000, 1,26,000 and 48,000 Jitres of arrack respectively for the year. He had deposited 4 month's rentals to the tune of Rs. 2,44,000/- earnest money Rs. 15,000/- and call deposit of Rs. 1,85,000/- with the State Government as per the statutory rules. The petitioner had to purchase the arrack required for his shops at Rs. 4-07 per litre being the issue price fixed for the year 1970-71 and continued for the year 1972-73 by the Board of Revenue, Excise, Andhra Pradesh. The components of the issue price are:(l) cost of arrack Rs. 1-26 p, (ii) excise duty Rs. 2-65 p. and (iii) transport charges 16 paise per pulk litre. It is alleged by the petitioner that the actual cost price of a litre of arrack that is being paid by the State Government to the private distilleries being 24 paise per litre, the State is not entitled to collect cost price at Rs. 1-26 p, per litre as per the impugned notification of the Board of Revenue dated 24-6-1970. The enhanced rate of Rs. 1-02 p. per litre of arrack sought to be collected by the State from the petitioner towards the cost price is stated to be illegal, without jurisdiction and violative of Articles 19(1 )(f), 19(1 )(g), 31 and 265 of the Constitution of India- The Petitioner, therefore seeks for the issue of a writ of mandamus directing the respondents not to collect cost price of arrack at Rs. l-26 litre but to collect only 24 paise per litre.

(2.) This claim of the petitioner is countered by the respondents contending inter alia that the petitioner who has agreed under a contract to purchase arrack at the issue price fixed by the Commissioner of Excise, is estopped from questioning the validity of the issue price and the action of the respondents in this regard is valid, constitutional and not violative of any of the fundamental rights guaranteed to the petitioner under the Constitution of India.

(3.) The only question that falls for determination is whether, on the facts and in the circumstances the fixation of issue price at Rs. 4-07 per litre of arrack is valid and constitutional as contended by the respondents,or illegal and violative of Articles 19(l)(f),19(l)(g)31 and 266 of the Constitution of India as urged by the petitioners. In order to appreciate the respective contentions of the parties it is necessary to briefly refer to what is meant by 'arrack' and the scheme of the Andhra Pradesh Excise Act, 1968 (hereinafter referred to as 'the Act') and the relevant rules made thereunder in so far as it relates to the lease of right to sell arrack in the State. "Arrack" is defined under Section 2(1) of the Act as "all liquor produced or manufactured in India and supplied by the Government, other than foreign liquor and Indian Liquor." This definition is an inclusive definition. It is not exhaustive. It takes in all liquor produced or manufactured in Indian and supplied by the Government. It excludes foreign liquor and Indian liquor defined undei clauses(15) and (18) of Section 2 respectively. "Liquor" is denned under clause (21) of Section 2 as including: