M.Katju, Onkareshwar Bhatt, JJ. - (1.) This writ petition has been filed for quashing the impugned notice dated 9.3.1995 Annexure-6 to the writ petition as well as recovery certificate dated 29.1.1993 Annexure-1 to the writ petition.
(2.) Heard, Sri S. N. Varma, senior advocate and Sri Yashwant Varma learned counsel for the petitioner and learned standing counsel for the respondents.
(3.) The facts of the case are that the U. P. Excise Department held a public auction for selling of rights to deal in liquor and other intoxicating substances in accordance with the U. P. Excise Act. Certain successful bidders purchased drafts favouring the Excise Department which were payable at the Main Branch of the petitioner at Allahabad. These drafts were submitted to the petitioner by the District Excise Officer along with the Government credit challans for their collection from the State Bank of India, Allahabad Branch. In paragraph 7 of the petition, it is alleged that the amount in favour of the excise authorities is not deposited with the petitioner-Bank, but the Bank only acts as an agent for forwarding the same for collection and after receiving the proceeds, the same is sent to the Government Treasury. Thus, the money of the Excise Department is not detained or utilized at any time by the petitioner. However, as alleged in paragraph 9 of the writ petition, due to certain unforeseen circumstances there was some delay in collection of the said drafts from the State Bank of India, Allahabad Branch. Hence the respondent No. 2, the Excise Commissioner, U P. issued a recovery certificate dated 29.1.1993 representing penal interest @ 18% at Rs. 1,69,650 under Section 38A of the U. P. Excise Act.;