LAKSHMI NARAIN RAM NARAIN Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioner-Firm, Messrs. Lakshmi Narain Ram Narain, had a licence for the wholesale sale of country spirit In several districts in Bihar in Form No. 27 appended to the Bihar and Orissa Excise Manual. Condition No. 7 of this licence was that "the licensee shall be bound to supply to licensed vendors by way of sale, at any warehouse at which the sale of spirit under this license is for the time being permitted, spirit of the quantity or quantities and description or descriptions mentioned in the passes produced by them". A notice dated the 15th February, 1966, seems to have been forwarded to the petitioner-Firm on the 20th October, 1966. A copy of this notice is Annexure 1 to the writ application. THE petitioner was asked to show cause why they should not be liable to pay Rs. 1,02.601,90 paise to the Government. THEy were also directed to show cause for failure to comply with conditions of licence in Form No. 27 of the Excise Manual which they were in duty bound to observe. Cause was shown on behalf of the petitioner. THE Excise Commissioner by his order dated the 4th March, 1963 (Annexure 3) held that there was no actual closure of shops in the districts of Palamau, Shehabad and Singh-bhum. THE compensation for loss of duty for actual closure in the districts of Haxaribagh and Monghyr, as recommended by the Deputy Commissioner and Collector of those districts came to Rs. 3317.20 paise in Hazaribagh and Rs. 3554.42 paise in Monghyr. Ultimately, finding the petitioner's default in regard to its failure to supply in those two districts the Excise Commissioner imposed a penalty of Rs. 8,000/- together with Rs. 6.871.72 paise towards loss of duty and Rs. 1.054.61 paise towards compensation which may be payable to the retail licensees. THE total penalty thus imposed was Rs. 15,926.23.

(2.) THE petitioner filed an appeal before the Member Board of Revenue. THE learned Member. Board of Revenue, while upholding in the main the view of the Excise Commissioner has knocked down the sum of Rs. 8,000/- imposed by way of penalty separately apart from the imposition of penalty for loss of duty and compensation payable to the retail licensees. In regard to the amount of compensation, the Member, Board of Revenue found that the actual amount of compensation as mentioned in the earlier portion of the order of the Excise Commissioner was Rs. 1,114.86 paise. He therefore substituted the amount of Rs. 1.054.61 paise by the figure Rupees 1.114.86 paise. Thus, the total amount of penalty imposed upon the petitioner under the Board's order is Rs. 7.986.48 paise. THE petitioner has obtained a rule from this Court to show cause why the order imposing penalty upon it be not called up and quashed. Cause has been shown on behalf of the Government

(3.) IN the result, we allow this writ application to the extent indicated above and knock down that portion of the orders of the Excise Commissioner and the Board (Annexures 3 and 5) whereby the petitioner has been directed to pay the sum of Rs. 1,114.86 paise as compensation payable to the retail licensees. The net result is that a sum of Rs. 6,871.62 paise payable as penalty by the petitioner is maintain-ed. There will be no order as to cost.