LexSECRETARY, DEPARTMENT OF EXCISE & COMMERCIAL TAXES AND ORS. versus M/S SUN BRIGHT MARKETING PVT. LTD., CHHATTISGARH AND ANR.
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.. . SECRETARY, DEPARTMENT OF EXCISE & COMMERCIAL TAXES A AND ORS. v. M/S. SUN BRIGHT MARKETING PVT. LTD., CHHA TTISGARH AND ANR. FEBRUARY 12, 2004 [V.N. KHARE, CJ., S.B.SINHA AND S.H. KAPADIA, JJ.] MP. Excise Act, 1921: Scope and nature of - Held: Is a self-contained Code. Sections 24(2) and 62(2)(g)-Licence fees-Remission/compensation- Entitlement to-liquor shop was ordered to be compulsorily closed-Held: B c Liquor contractor entitled to remission/compensation in payment of licence fee unless the same was expressly barred. D Section 24(1)-Licence fee-Remission/compensation-Entitlement to- Col/ector, having regard to sub-para 3, Ch. 13 of the Handbook for the Returning Officers issued by State Election Commission, ordered compulsory closure of liquor shops due to Municipal election-Held: Such an order was passed under Clause (viii) of Schedule 4 of Sale Memo and not under Clause E (v) thereof-Hence, liquor contractor entitled to proportional rebate/ compensation in auction money. Sections 24(2), 28 and 62(2)(g), (h) & (j)-Licence fee-Remission! compensation-Entitlement to-Liquor shop was closed· due to political agitation and demonstration-Held: In view of Clause (vii) of the General F condition of Sale licensee entitled to claim remis$ionlcompensation in licence fee. Section 28-Licence fee-Payment of-Exemption from-Delay in grant of licence-Excise Department issued liquor licence a few days after commencement. of contract-High Court granted exemption from payment of G licence fee-Correctness of-Held: Liquor contractor not entitled to exemption from payment of licence fee in view of the Act, General licence Conditions or the conditions of Sale Memo-Hence, High Court's order set aside-However, licensee could avail of other remedies, if any. 313 II 314 SUPREME COURT REPORTS [2004] 2 S.C.R. A Section 24(2) proviso-Nature of-Held: Mandatory. The respondent was awarded a contract for running Indian Made Foreign Liquor shops. However, the licence was handed over to the respondent a few days after the date of commencement of the contract. B The respondent filed a writ petition before the High Court claiming deduction by way of remission and/or compensation from the amount of licence fee payable by him (i) for three days when the liquor shops remained closed due to political agitation and demonstration; (ii) for three days when the shops were directed to be closed for municipal election and C (iii) for three days due to delay in handing over the licence. The High Court allowed the writ petition. Hence the appeal. On behalf of the appellant, it was contended that the respondent was not entitled to any compensation and/or remission in view of Section 24(1) of the M.P. Excise Act, 1915 and in view of Condition No. 18 of the Sale D . Memo as also general Licence Condition No. 8 and Rule viii(3) thereof. On behalf of the respondent, it was contended that the respondent was entitled to ~ompensation and/or remission in view of Clause (V) of Schedule 4 of the Sale Memo. E Allowing the appeal in part, the Court HELD: 1. The M.P. Excise Act, 1915 is a self-contained Code. 2. The scheme of the Act, the General Licence Conditions and the conditions contained in the Sale Memo postulate that, in the event, the F licensee is required to close a shop in terms of an order passed by the statutory authority or otherwise, he would be entitled to claim remission in licence fee u.nless the same is expressly barred. (322-D] 3. Condition No. 18 of the Sale Memo does put an embargo on remissiOn in payment of licence fees in the event of the closure of the shop G due to any reason authorised by law. The said provision furthermore cannot restrict the operation of the provisions of the Act. The provision contained in Clause 42 of the Sale Memo in this behalf had been deleted. (324-C] 4. In terms of Clause (VII) of the Sale Memo, the licensees are not H entitled to any rebate/concession for the days of closure of such shops in - - - •' .. f \_ ..:#< SECY .. DEP1T. OFEXCISE & COMMERCIAL TAXES 1·. SUN BRIGHT MKTG. PVT.LTD .. 315 - terms of Clauses (I) to (VI). Clauses (VII), therefore, does not prohibit A remission in licence fee and/or grant of compensation if the closure is directed for any reason other than those mentioned in Clauses (I) to (VI) of the said Memo. (324-H; 321-AI 5. It is also not in dispute that the power of the Collector to direct -- closure of an
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