LAWS(APH)-2005-2-96

MADHU WINES PARAVADA Vs. SPECIAL CHIEF SECRETARY

Decided On February 24, 2005
MADHU WINES, PARAVADA, VISAKHAPATNAM Appellant
V/S
SPECIAL CHIEF SECRETARY, REVENUE (EXCISE-II) DEPT., GOVT. OF A.P., HYD Respondents

JUDGEMENT

(1.) In this batch of writ petitions, some of the existing licensees of IL-24 wine shops in the State of Andhra Pradesh, challenge the validity of the amendment to Rule 26-A of the A.P. Indian Liquor and Foreign Liquor Rules, 1970 (for short 'the Rules') through G.O. Ms. No.991, Revenue (Excise-II) Department, dated 4.12.2004, and the excise policy of the Government, enunciated in G.O. Ms. No. 184, dated 7.2.2005, in relation to IL-24 shops, for the excise year 2005-06. In some of the writ petitions, the validity of G.O. Ms. No.206, dated 10.2.2005, which brought about further amendments to the Rules, is challenged The background:

(2.) The manufacture, sale, transport and storage of intoxicants in the State of A.P. is governed by the provisions of A.P. Excise Act (for short 'the Act') and the Rules made thereunder. Apart from various regulatory measures, the Act provides for grant of different kinds of licences, in such matters. The Rules prescribe the procedure for grant of licences, to enable the licensees to undertake trade in different kinds of intoxicants. To the extent it is relevant to the present context, it would be sufficient to refer to three categories of licences. IL-17 is a licence, which is granted for establishing a bar, and to supply liquor therein. Licence, IL-24, is for retail sale of liquor, in sealed bottles. Consumption of liquor in the premises of such shops is not permitted. In the recent past, a new category of licence viz., IL-24(B), was provided for, to enable an IL-24 licensee to maintain a place known as 'permit room', where the customers can consume liquor purchased in that shop. The licences are granted or renewed for a period of one year, commencing from 1st April, of a year, and ending with 31 st March, of the succeeding year.

(3.) Till the Excise year 1997-98, prohibition of intoxicants was in force in the State. From the Excise year 1998-99 onwards, the prohibition was relaxed and licences of various categories were being issued from time to time. Initially, grant of licences, particularly IL-24, was on the basis of applications. The shops were notified with reference to Districts and Mandals, and applications were invited. If the number of applications exceeded the number of notified shops, the licences were granted to the applicants, selected on the basis of drawal 6f lots. This procedure continued till the current excise year. Rule 26-A of the Rules, as it stood before 4-12-2004, provided for renewal of the existing licences, almost as a matter of course. Sub-rule (2) thereof was to the effect that, in case the application for renewal is not considered before the expiry of the licence period, the licensee shall be entitled to carry on the business, till he is communicated the decision, either granting or refusing the renewal. Through G.O. Ms. No.991 dated 4.12.2004, the Government amended the Rule 26-A, renewal of licences was made discretionary, and to depend upon the policy. The various provisos and subsection (2) of the Rule were omitted altogether,