CHANDAN MAL Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) IN these six writ petitions filed under Article 226 of the Constitution of India, the petitioners have challenged the validity of the notices of demand and the proceedings for recovery of the said demands in respect of the licenses for retail sale of Country Liquor issued in their favour. As these writ petitions raise common questions they are disposed of by a common order.

(2.) THE retail sale of Country Liquor in the State of Rajasthan is regulated by the provisions of the Rajasthan Excise Act, 1950 (hereinafter referred as 'the Act') wherein, it is laid down that no excisable article shall be sold except in accordance with the terms and conditions of a licence granted in that behalf and provision is made with regard to grant of licence In exercise of the powars conferred by the Act, the State Government h's framed the Rajasthan Excise Rules 1965 (hereinafter referred at the Rules'). The Rules prescribe the various modes by which licences may be granted. One of the modes prescribed in the rules in with regard to grant of a licence under the guarantee system and provisions with regard to the same are contained in Chapter VII -A of the Rules. In a licence under the guarantee system the licensed guarantees to draw from the Government warehouse and a sale in a finacial year or the part there of country liquor of a specified value which is called the amount of guarantee end the licence is required to deposit 10% of the amount of guarantee by way of security. The licensee is also required to draw from warehouse every month liquor equivalent in value to 1/12th of the amount of guarantee and in case, the licensee fails to fulfil the terms of the guarantee, the amount of(sic)deducit can be recovered from out of the security amount deposited by him and also from his movable and immovable property.

(3.) THE petitioners in these writ petitions were granted licences under the guarantee system for retail sale of country liquor during the year 1967 -68. The particulars with regard to the amount of the guarantee undar their respective licences, the warehouse from where they could draw their supply of country liquor, the amount of short -fall that had occurred during the year 1967 -68 and the amount of demand in respect of which recovery is being made against them are fully set out in the schedule annexed hereto and the tame shall form the part of this order.