ABHIMANYU BEHERA Vs. STATE OF ORISSA AND OTHERS

JUDGEMENT

(1.) The petitioner, who is a licensee of Low Strength Cheap India Made Foreign Liquor for the years 1997-98, 1998-99 and 1999-2000 in respect of Dhobabanda shop in the district of Ganjam, has filed this application challenging the order dated 24.06.2006 in Annexure-8 rejecting the representation of the petitioner filed on 25.11.2004 and consequential demand notice dated 16.11.2006 in Annexure-9 issued by the Superintendent of Excise, Ganjam - opposite party no.4 demanding excise duty towards short lifting of Minimum Guaranteed Quantity (MGQ) for the aforesaid period.

(2.) The factual matrix of the case, in hand, is that the State Government, vide letter dated 21.03.1997 in enclosing therewith the excise policy framed for the year 1997-98, communicated to the Commissioner of Excise, Odisha to take appropriate action. As per Clause-10 of the said policy, 200 Low Strength Cheap India Made Foreign Liquor (in short 'LSCIMFL') shops in 21 districts shall be opened by way of auction followed by tender and negotiation. The Collector shall fix the reserve price in respect of the shop taking into consideration the licence fee of the previous Country Spirit Shops and will be settled after the approval of the Government. As per Clause 10 (C), during 1997-98 the MGQ for all bottling plants of the liquor shall be determined taking into consideration 60% of their licensed annual bottling capacity and the excise duty shall be fixed as applicable to that amount. If the concerned bottling plant fails to produce the fixed quantity of liquor, the excise duty on the deficit quantity shall be collected from the licensee as arrear dues.

(3.) Pursuant to such policy, the Collector, Ganjam issued the sale notice on 10.07.1997 for auction sale of LSCIMFL shops on 01.08.1997 for the year 1997-98 for the district of Ganjam. As per Clause-8 of the sale notice, every successful bidder of LSCIMFL shop shall abide by to lift the monthly MGQ as fixed by the Government for each shop for the year 1997-98 and if the licensee fails to list the monthly MGQ, the equivalent duty on short lifting will be realized as arrear dues as per the Rules. The petitioner took part in the auction in respect of LSCIMFL shop at Dhobabanda, Berhampur and he being the highest bidder, the shop was settled in his favour and the licence was issued on 01.09.1997 with monthly licence fee of Rs. 20,500/-. The said licence was renewed for the years 1998-99 and 1999-2000.