MEGHALAYA WINE DEALERS ASSOCIATION Vs. STATE OF MEGHALAYA

JUDGEMENT

(1.) In this writ petition, the petitioner(s) herein have challenged the vires of the Rule 242 and Rule 246 of the Meghalaya Excise Rules as amended by the Meghalaya Excise (Amendment) Rules, 2009 and notified vide notification dated 3rd July, 2009 contained under No. ERTS(E) 11/98/124 and published in the Gazette of Meghalaya July 16, 2009 as well as Rule 373 of Meghalaya Excise (Amendment) Rules, 2008 as notified vide notification dated 2nd April, 2009 contained under No. ERTS(E) 22/2008/23 and published in the Gazette of Meghalaya April 9, 2009. Further petitioner(s) also have challenged the legality of the order dated 14 .07.2009 issued by respondent No. 3 under No. K/EX/10/97/35.

(2.) The facts involved in this case are as follows:

(3.) Petitioner association, as contended, is composed of 20 members associated with the business of Bonded Warehouse for storage of liquor i.e. Indian Made Foreign Liquor (for short IMFL), 150 numbers of members of retail sellers of IMFL, and 12 numbers of members having Bar in the State of Meghalaya. All the members of the petitioners' association have got common grievances and accordingly had taken up the matter with the Government of Meghalaya in the name of the association. It is contended that since the members have got a common cause of action they filed the instant writ petition in the name of association jointly to avoid multiplicity of litigation. The members of the association having obtained licences are dealing in business of liquor within the State of Meghalaya by obtaining licences from the respondent authorities by paying stipulated license fee before issuance of licence followed by advance payment of excise duties, import duties, countervailing duty, gallonage fees etc. as well as security deposit paid in advance in the following scale. <FRM>JUDGEMENT_673_GAULT2_2010Html1.htm</FRM> While the members of the petitioners' association running the business in liquor on the basis of the licences granted to them by the respondent authorities by notification dated 3.7.2009 contained under No. ERTS(E) 11/98/124 and published in the Gazette of Meghalaya July 16, 2009 Rule 246 (unamended) of the Meghalaya Excise Rules (for short the Rules) have been amended while vide notification dated 2nd April 2009 contained under No. ERTS(E) 22/2008/23 and published in the Gazette of Meghalaya April 9, 2009 a new Rule 373 has been added to the Principal Rules. The amended rules may be reproduced as under: "Rule 246 : For existing Rule 246 of the Principal Rule, the following shall be substituted, namely-"Security Deposit"- an advance deposit pledged as Security in favour of the Commissioner of Excise for due observance of the conditions and terms of the license and ensuring prompt payment of license fees shall be deposited by all licensees. The amount of Security deposit will be as follows : <FRM>JUDGEMENT_673_GAULT2_2010Html2.htm</FRM>