SATPAL & CO. ETC versus LT. GOVERNOR OF DELHI AND ORS

Citation: [1979] 3 S.C.R. 651 · Decided: 12-04-1979 · Supreme Court of India · Bench: D.A. DESAI · Disposal: Dismissed

Cited by 3 judgment(s) · cites 6 · see the full citation network in Lexace

Judgment (excerpt)

651 
SATPAL & CO. ETC. 
l'. 
LT. GOVERNOR OF DELHI AND ORS. 
April 12, 1979 
[D. A. DESAI AND A P. SEN, JJ.] 
Punjab Excise (Delhi 'A1nei1dn1eizt) Ordinance, 1979 ctnpowering tile· Govern-
numt under the Punjab Excise Act, to levy "special duty" on the iniport of coun .. 
try liquor. into Delhi and the Delhi Fiscal Duty Order, 1979 levying "special 
duty'"-Validity of, 
Powers o'~ Parliament to /egislat~ exclusively for Union Territory of Delhi, 
B 
a part of the Territory of India not included in a State-Constitution of India 
C 
Articles 246 to 248 and Entry 97 of t/ie Union List. 
Right to trade in intoxicants-Whether a fundanientrd right-Constitution of 
India Article 14, 19(1)(g) and 301. 
Retrospective Legislation is valid in case of intoxicants-Constitution of India 
Art. 47. 
D 
While implementing the provisions of the Punjat, Excise Act, 1914 as in 
force in the Union Territory of Delhi, the concerned authority used to hold 
auction for grant of licence in Form L-10 for selling country liquor and at 
one such auction held on 29th March 1978, the petitioners' bids were accepted 
and they were granted licences in Form L-10 for the period 1st April 1978 
to 31st Mairch 1979. The licence included a condition to sell a bottle of 750 ml. 
of country liquor at Rs. 15/- which was 
inter alia made up at excise duty 
E 
(<tyled as still-head duty) at the rate of Rs. 10.23 and profit of licensee at 
the rate of Rs. 2/-· In W.P. 716/78, validity of the levy of 'still head duty' 
was challenged by certain petitioners inter alia on the ground tha-t it was nothing 
but countervailing duty and in the absence of manufacture of liquor in Delhi, 
countervailing duty on the import of liquor cannot be constitutionally levied. 
This contention found favour with a learned single judge of the Delhi High 
Court and a number of Letters Patent Appea.ls were filed against that Judgn1ent. 
F 
During the pendency of these appeals President of India pron1ulgated an 
Ordinance purporting to amend the Punjab Excise Act, 1914, styled as Punjab 
Excise (Delht Amendment) Ordinance, 1979 with retrospective effect, conferring 
power on the Government under the provisions of the Act to levy 'special duty' 
on the import of country liquor in Delhi at rates not exceeding that set out 
in Schedule I~A which was introduced in the Act by the Ordinance. 
Pursuant to the Ordinance amending the Principal Act, the Delhi Fiscal 
Duty Order, 1979 was issued levying special duty at the rates set out in the 
order on import of country liquor into Delhi. 
Some of the petitioners ques-
tioned the validity 'generally of the Ordinance and specifically of the impost 
of special duty in Civil Writ No. 16/79. A Division Bench of the Delhi High 
Court heard the Letters Patent Appeals and the Writ Petition No. 116/79 and 
by a common judgment held the ordinance as well as the impost of the special 
duty thereunder valid, dismissed the \Vrit Petition and a11owed the Letters Patent 
Appeals. 
G 
H 
:-- 1 
A 
B 
c 
D 
E 
F 
G 
H 
652 
SUPREME COURT REPORTS 
[1979] 3 s.c.R. 
Dismissing the special leave petitions, the Court 
HELD ; 1. Scheme underlying distribution of Legislative power in Part XI 
Chapter I and especially Articles 246 and 248 is that except the matters spe<:ific-
ally enumerated in List II (State List) in the Seventh Schedule, Parliament's 
plenary po\Ver to legislate extends to all conceivable matters which can be topic 
of legislation, and even this limitation on its power vanishes \Vhen 
Parliament 
legislates for part of the territory of India not included in a State. The three 
dimensional picture becomes complete, viz. (i) to select topic for legislation 
(ii) enactment of legislation on the topic and (iii) to impose tax in respect of 
such subject matter of legislation by reference to Art. 248 which confers power 
to make any law with respect to any matter not enumerated in Lists JI and III 
including the po\ver to impose tax not mentioned in either of those lists. Under 
Art 246 ( 4) Parliament has power to make laws with respect to any matter for 
any part of the territory of India, not included in a State notwithstanding that 
such matter is a matter enumerated in the State· List. Power of Parliament thus 
to legislate with respect to any ·matter for Delhi, territory not included in a 
State is unabridged or unfettered by the entries in the 
State List. 
Further 
residuary power of legislation including the power to levy tax is conferred on 
Par

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