LAWS(MPH)-2024-2-70

VINDHYACHAL DISTILLERIES PVT Vs. STATE OF MADHYA PRADESH

Decided On February 22, 2024
Vindhyachal Distilleries Pvt Appellant
V/S
STATE OF MADHYA PRADESH Respondents

JUDGEMENT

(1.) This petition has been filed by the petitioner while praying for the following reliefs:-

(2.) The facts, as elaborated in the petition, reveal that the petitioner is holder of D-1 license, which is issued in terms of the provisions of M.P. Excise Act, 1915 (hereinafter to be referred to as the Act of 1915). The license in prescribed Form D-1 is granted to manufacture spirit in Distillery. The Ministry of Petroleum and Natural Gas, Government of India bestowed its consideration regarding use of Ethanol as a petroleum product for the purposes of transportation and accordingly, Roadmap for Ethanol blending in India 2020-25 was prepared by the Expert Committee, in which various measures were suggested for the purposes of Ethanol blending in petrol. The Union as well as the State Government of Madhya Pradesh have introduced schemes for blending of Ethanol with the petrol by providing financial assistance to Distilleries to manufacture Ethanol, to be eventually blended with petrol. In terms of the said scheme, approval in principle was accorded by the Central Government and consequently, the petitioner applied before the State Government after investing colossal amount for the purposes in that regard. The other statutory approvals were also obtained but vide impugned order dtd. 7/2/2023 (Annexure P-21), the Excise Commissioner has rejected the application of the petitioner dtd. 18/4/2022 submitted for installation of Molecular Sieve Dehydration Column (MSDH), which is intended to be used for manufacture of Ethanol. Assailing the order dtd. 7/2/2023 (Annexure P-21), this petition has been filed. The petitioner is also seeking quashment of another order dtd. 8/10/2021 (Annexure P-11), which stipulated that within the premises of Distillery Unit, there shall not be any permission to manufacture and storage of Ethanol.

(3.) Learned Senior Counsel for the petitioner contends that though the petition was initially filed while seeking benefits under the schemes, which have been brought on record as Annexure P-3 floated by the Central Government and also the scheme contained in Annexure P-8 floated by the Government of Madhya Pradesh, however, as the schemes floated by the Governments were to remain in currency for a limited period and as the said period is already over, the petitioner is confining his relief so far as the same relates to relief prayed for in Paragraph 7(ii) of the writ petition. It is contended by learned Senior Counsel that though other relief clauses as mentioned in Paragraph 7 of the writ petition pertain to the direction as regards providing financial assistance for Ethanol and Bio-Fuel Production in terms of the scheme floated by the Central as well as State Government, however, by efflux of time as the schemes are no more in force, thus the petitioner while waiving benefits under the Scheme, is making prayer for a direction to the respondents to accept the claim of the petitioner with respect to grant of consent for setting up Molecular Sieve Dehydration Column (MSDH) for manufacture of Ethanol at its existing Distillery. It is further contended that as on date, there is no policy either by the Central Government or by the State Government which prohibits manufacture of Ethanol within the premises of a Distillery, which is being run by a D-1 license holder; therefore, in absence of any policy or executive instructions, such a permission cannot be declined. It is the further contention of learned senior counsel that there is no prohibition even in the statutory provision as regards the same, else the Central as well as the State Government would not have floated the schemes providing financial assistance for the purpose of installation of Unit for manufactur as well as storage of Ethanol within the premises of a Distillery Unit.