STATE OF PUNJAB AND ANR. versus MIS. DEVANS MODERN BREWERIES AND ANR. ETC.

Citation: [2003] SUPP. 5 S.C.R. 930 · Decided: 20-11-2003 · Supreme Court of India · Bench: V.N. KHARE · Disposal: Case Partly allowed

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Judgment (excerpt)

A 
B 
ST ATE OF PUNJAB AND ANR. 
V. 
MIS. DEV ANS MODERN BREWERIES AND ANR. ETC. 
NOVEMBER 20, 2003 
[V.N. KHARE, CJ., R.C. LAHOTI, B.N. AGRAWAL, S.B. SINHA 
AND DR. AR. LAKSHMANAN, JJ.] 
Constitution of India : 
C 
Arts. I9(/)(g) and (6) and 47 and Schedule Vll List 11 Entry 8-Trade 
or business in intoxicating liquor-Nature of-Held, Is not a fandamental 
right-Trade in liquor is considered inherently noxious, pernicious and is res 
extra commercium. 
D 
Arts. 30I, 304-Trade in liquor-Applicability of-Permissive privilege 
to deal in liquor not being a right, Aris. 30 I to 304 are rendered inapplicable 
lo trade, commerce and intercourse in liquor at the threshold-Freedom to 
trade not available to liquor since it is a noxious substance injurious to public 
health, public order and morality-Thus trade in liquor is res extra 
commercium-Jurisprudence-law and Morality. 
E 
Art. 30 I-Scope of freedom-Regulations-Regulation for the purpose 
of Art. 30I is not confined to regulation which facilitates trade alone but 
includes regulation imposed in the interest of public health, public order and 
morality. 
F 
Arts. 305, 30I to 304, 366(IO) and 372-Punjab Excise Act, I9I4-
Validity of-Held, is an existing law under Art.366(10) and its continued 
application is saved by Art. 372-lrrespective of whether or not Arts.30I-304 
applicable to trade in liquor, the Act is saved by Art.305. 
Arts. 30I to 304, 245, 246, 265, 366(28) and Schedule Vil list 11 Entries 
G 8,5I,62 and 66--levy by State for parting with privilege to trade in liquor-
Regulation of-Mode and Scope-Imposition of a levy in addition to any 
counterveiling duty levied under list 11 Entry 5 I, on imports of liquor into a 
State-Whether violative of Arts.30I and 304(a)-Held, levy imposed by Stale 
for parting with privilege to trade in liquor is neither a tax nor a fee-It is 
H 
930 
ST A TE v. DEY ANS MODERN BREWERIES 
931 
simply a levy/consideration for the act of granting permission or for exercise A 
of power to part with the said privilege-Modalities of the levy of fees or the 
quantum thereof has no bearing on its legal pedigree-Trade in liquor is res 
extra commercium and regulation of trade in liquor is the hallmark of State 
action-Such regulation can be and normally is through the mode of imposition 
of levies-State Government has unfettered powers to regulate the export/ 
import/sale of intoxicants-In addition to levy of excise and counter-veiling B 
duties, there is no bar on the State to charge any other fees on account of 
consideration for the privilege provided to a licensee to trade in liquor-
Imposition of said import duty is in exercise of the regulatory powers of the 
State-Thus it does not attract the bars of Arts. 301 and 304(a) as the imposition 
of such import fee does not in any way restrict trade, commerce and intercourse C 
among the States-Hence Or 1-D (iiij of the Punjab Excise Fiscal Orders, 
1932 constitutionally valid-So also Kera/a Notification dated 31.12.1992 
raising import duty on IMFlfrom Rs. 2 to Rs.5 is also constitutionally va/id-
Arts.246,265 and Schedule VII list II Entry 8-lmposition of levy not named 
in the parent Act-Validity of-Held, if the levy is actually imposed by delegated 
legislation under the parent Act, the same would be valid and not ultra vires D 
thereof-Administrative law-Ultra Vi~es-Grounds for plea of 
Arts.298, 14, 246, 265 and Schedule VII list //-Entries 8,51,62 and 
66-Arbitrariness-liquor licence-Conditions of-Change in on the basis of 
excise policy of State Government-Rate of import duty levied on liquor E 
increased after grant of licence-Permissibility of-The licensee besides 
payment of duty, is to comply with such conditions as the State Government 
may impose while formulating the excise policy for the year concerned-
Having accepted the contracts/licences and having folly exploited the advantage 
flowing from it to the exclusion of others and having reaped rich commercial 
benefits from that activity, it is not open to wriggle out from the contract by F 
challenging inter alia any particular condition thereof 
Arts. 141and13-Stare decis-limils of-Discussed 
Art.141-Supreme Court vis-a-vis itself......Coordinate Bench decision to 
be followed-In case of disagreement, matter to be referred to larger Bench. G 
Excise laws : 
Punjab Excise Act, 1914-Ss.58, 59, 16 to 19, 31to35 and 3(9), IO and 
12-Nature and Scope of-Validity of Or. 1-D(iii) of the Punjab Excise Fiscal 
Orders, 1932-Held, Or 

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