Decided on February 29,2012

Himalayan Distillers Appellant


- (1.) HEARD Mr. B.P. Nautiyal, Senior Advocate assisted by Mr. Jayvardhan Kandpal, Advocate for the petitioner and Mr. Subhash Upadhyay, Brief Holder for the State of Uttarakhand.
(2.) THE petitioner has filed present writ petition before this Court challenging the order dated 23.10.2001 passed by the Excise Commissioner, Uttaranchal, Dehradun by which the licence given to the petitioner for opening a distillery was cancelled and also order dated 5.3.2002 whereby his revision against the said order was dismissed.
(3.) THIS matter pertains to the year 2001 -02. In this case counter affidavit and rejoinder affidavit have already been exchanged between the parties. In the erstwhile State of Uttar Pradesh as well as in the present State of Uttarakhand the law governing the field of excise including the manufacturing and distribution of liquor is governed by the U.P. Excise Act, 1910 (from hereinafter referred to as the Act). Under Section 40 of the said Act, the State has got powers to make rules for the purposes of carrying out the provisions of the said Act. In the year 1910 the said rules were framed by the erstwhile Government of Uttar Pradesh which are known as Rules under the U.P. Excise Act, 1910. Chapter IX of the said Rule pertains to distillery. The rule with which we are presently concerned is Rule 702, which reads as under: "702. (1) Any person desiring a licence to establish a distillery shall submit an application in Form P.D. 32 to Collector of the district in which he wishes to establish his distillery and the Collector will forward his application for the orders of the Excise Commissioner. (2) On his application being entertained, the applicant shall file for approval description and plans of the building in which he purposes to construct his distillery and also an inventory giving the description and size of the stills and all other permanent apparatus. The plans shall be drawn to scale on tracing cloth. Showing the exact position and the dimension of each vessel to be used, and tracing course of all pipes or channels in the colours which would be actually used in accordance with rules on the subject, together with the elevations of all the more important parts of the distillery, as such the receiver room and the warehouse. (3) If after such enquiry as he may deem necessary, the Excise Commissioner is satisfied, he shall subject to such conditions as the State Government may deem fit to impose grant a licence in Form P.D. 33 authorising the establishment of the distillery on payment of fee of Rs. 25,000 (Rupees twenty -five thousand). Note. - The Excise Commissioner shall have power to grant or refuse any application for licence having regard to the actual requirement in the State. (4) The aforesaid licence be valid, unless specifically extended for a year from the date of issue, within which period the holder thereof shall arrange to secure the land, buildings, plant machinery and other equipment required for grant of licence for the manufacture of spirit and is liable to be revoked or withdrawn at any time, in public interest, after giving the holding a notice to show cause, against such action and after hearing him, if he so desires. No compensation for damage or loss shall be payable when the licence is so revoked or withdrawn." ;

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