KARNAL DISTILLERY CO LTD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS is a petition filed under Article 226 of the Constitution by a company the karnal Distillery Co, Ltd against the State of Punjab and Excise and Taxation Commissioner.

(2.) THE petitioner is an old established distillery company which at present operating under a licence in the form D-2 granted by the Financial Commissioner on the 5th November 1941. It had a licence long before that. there seems to be no doubt that the distiller which is situated in the town of Karnal has long been regarded as a nuisance and for years the Government has been trying to have it removed to some place away from the town. Under the terms of the licence apart from the powers given to the Financial Commissioner may by notice in writing determine and the then Excise and Taxation Commissioner to whom the powers of the Financial Commissioner Act caused a notice copy annexure 3 dated the 4th of May 1959 to be served on the company under section 21 (b) of the excise Act and clause 9 of the licence determining he company's licence as from the 15 the of May 1960. However shortly before the year of notice was due to expire the Excise and taxation Commissioner sent the letter, copy annexure 4 on the 4th of May 1960 to the company when reads-

(3.) HOWEVER the Government seems to have pursued a vacillatory policy in the matter and the letter, copy annexure 6 dated the 25th of January 1961 was sent to the company informing it that the notice terminating the licence was again being kept in abeyance. A further communication copy annexure 7 dated the 28th of August 1962 again informed the company that action with regard to shifting of the distillery from its present site was to be held in abeyance and another communication copy annexure 18, dated the 3rd November 1962 perhaps shows some light on the government's reasons for its apparent indecision in the matter. the main portion of this document reads-