RAMKALI DEVI Vs. STATE OF BIHAR

JUDGEMENT

(1.) HEARD Mr. Y.V. Giri, Senior Advocate appearing for the petitioners and Mr. Purnendu Singh, J.C. To A.G. representing the State.

(2.) THE petitioners in this case held licences for bars-situate out-side the limits of any municipal corporations. THEy seek to challenge a notification, dated 8.8.2005 by which the Board of Revenue in exercise of powers under Section 90 of the Bihar Excise Act, amended Rule 107 of the Bihar Excise Rules fixing fees of licences for sale of IMFL by hotels, restaurants, bars, clubs, canteens etc. THE petitioners try to assail the amended Rule 107 in so far as it does away with the rural category that was there under the previous rule and fixes the annual fee for the licence at the flat rate of Rs. 3 lakhs for all hotels, restaurants, bars etc. not being a 3 star, 4 star or 5 star hotel and situate at any place out-side the Corporation limits. Under the previous rule apart from Star-hotels or restaurants, bars etc. at places like Patna, Ranchi, Jamshedpur, Dhanbad and Bokaro there was an specific category under Clause 5, described as, 'for rural areas' and the annual licence fee for restaurants, bars etc. in a rural area was Rs. 60,000/-.

(3.) LEARNED Counsel submitted he was not unconscious that the matter was governed by the law of Excise under which trading in intoxicants was held to be the exclusive privilege of the State. But in the event, the State parted with its privilege on payment of certain fee, it should be held obliged to atleast maintain a modicum of reasonableness and to follow the principles of equality guaranteed under Article 14 of the Constitution.