Ojha, J. - (1.) This appeal on the basis of a certificate granted under Article 133(1)(c) of the Constitution of India has been filed by the Government of Andhra Pradesh against the judgment dated 14th March, 1972 of the Andhra Pradesh High Court allowing writ petition No. 4312/71 filed by the respondent. The respondent obtained a Distillery licence under the Andhra Pradesh Distillery Rules, 1970 (hereinafter referred to as the Rules) framed under the Andhra Pradesh Excise Act, 1968 (hereinafter referred to as the Act) and has been carrying on the business of manufacture and sale of wine and other allied products. The excise authorities posted one Inspector, one Sub-Inspector and four Constables at the respondent's factory premises and required the respondent to pay their salaries and allowances etc. in pursuance of Section 28(2) of the Act. The respondent made representations to the excise authorities against the said demand and having failed to get any redress, filed the aforesaid writ petition challenging the demand on two grounds:-
(2.) These contentions raised on behalf of the respondent found favour with the High Court which by the judgment appealed against allowed the respondent's writ petition and directed the issue of a writ restraining the Excise Department from either demanding or collecting the aforesaid establishment charges of the supervisory staff posted at the factory premises of the respondent.
(3.) It has been urged by the learned counsel for the appellant that the High Court committed an error in appreciating the true nature of the demand. According to learned counsel for the appellant, the demand was in the nature of price for parting with the privilege to manufacture and sell wine and other allied products which privilege exclusively vested with the Government. Learned counsel for the respondent on the other hand supported the reasoning which commended to the High Court in allowing the writ petition.;