CENTRAL WINES Vs. GOVT OF A P

JUDGEMENT

(1.) There are six petitioners in this writ petition. All of them are holders of Form B. W. 1 licence granted under The Indian Liquor Storage in Bond Rules, 1969. Petitioners 1 to 3 are also licence- holders of Fo'tn F L. 15. The six writ peti- tioners assert Ru'a 10 of the 1969 Rules is ultravires of Sec. 16 of the A. P. Act, 1969.

(2.) There was an earlier writ petition in this Court in W. P. No. 3698 of 1972 and batch, a like issue was raised, prior to the amendment of Rule 10 and the writ petitions were allowed. Thereafter, as a result of the above judgment, Rule 10 is brought about by amendment.

(3.) For appreciation of the contra- versy, it is seen that under clause (d) of sub section (2) of Sec 72 of the Act, Rules can be framed for regulating the import, export transport, manufacture, cultivation, possession, supply or storage any intoxicant. Sec. 16 of the Act also recites, the Commissioner may establish distillery in which spirit may be manufac- tured, and in clause (d) it is further reci- ted, the Commissioner may establish, continue or licence a warehouse, wherein intoxicant may be deposited and kept. On a reading of Sections 16 and 72 of the Act, it is apparent that there is power for establishing warehouses. The State Governmsnt may promulgate Rules to regulate the business in the warehouses with a view to control sales. The Rule further shows, where liquor is stored, the liquor shall not be removed or transferred from the warehouse to the wholesale shop of the licensee, except on a permit granted in Form B W 3, wherein 10 items are to be filled-in as to the kind of liquor for issue, number of bottles to be remo- ved, contents in each bottle, bulk litres, proof of strength, rate of duty, amount of duty, challan number, date and name of the treasury into which the duty is remitted, adderss of the licensee's wholesale shop and remarks. These particulars read with Rule 10 indicate that from the warehouse to licensee's wholesale shop when it is removed, the duty has to be paid prior to the removal.