- (1.) M. Katju, J. Heard learned Counsel for the parties.
(2.) THIS writ petition has been filed making four prayers. The petitioner has only pressed to relief No. (ii) and (iv) in the petition. Prayer Nos. (ii) and (iv) read as under: " (ii) A writ, order or direction in the nature of certiorari quashing the levy of licence fee at the rate of 15% ad valorem by means of Notification No. 1327 dated 25-5-1999 known as U. P. Licences for the possession of Denatured Spirit and Specially Denatured Spirit (Fourth Amendment) Rules, 1999 (Annexure 2 to the writ petition ). (iv) A writ, order or direction in the nature of mandamus commanding the respondents to refund the licence fee illegally collected from the petitioner during the last 3 years beginning from the date of filing of this writ petition alongwith interest at the rate of 12% per annum till the date of refund. " The petitioner holds a licence in Form FL-41 granted under the provisions of the U. P. Excise Act, 1910 and the rules framed thereunder. A true copy of the form is Annexure 1 to the petition. The petitioner is aggrieved by levy of licence fee on the sale of specially denatured spirit to licenses holding licence in Form FL-41 at the rate of 15% ad valorem on the sale made by a distillery/wholesale vendor to FL-41 licences under the provisions of the U. P. Licences for the Possession of Denatured Spirit and Specially Denatured Spirit Rules, 1976 as amended from time to time. The rules were amended by notification dated 25-5-1999 called U. P. Licence for the Possession of Denatured Spirit and Specially Denatured Sprit (Fourth Amendment) Rules, 1999 which was published in the U. P. Gazette on 25-5-1999. A true copy of the 1976 Rules is Annexure 3 and a true copy of the amended Rules of 1999 is Annexure 2 to the petition. It is alleged in para 4 of the petition that the licence fee on FL-41 licence is neither regulatory nor compensatory fee because no services are rendered to the licensee nor it can be justified as a regulatory fee. Denatured spirit has been defined in Section 3 (9) of the U. P. Excise Act, 1910 as follows: "denatured" means rendered unfit for human consumption in such manner as may be prescribed by the State Government by notification in this behalf when it is proved that any spirit contains any quantity of any substance prescribed by the State Government for the purpose of denaturation the Court may presume that such spirits or contains or has been derived from denatured spirit. "
(3.) IT is alleged in para 9 of the petition that denatured and specially denatured spirit are industrial alcohol and are unfit for human consumption and hence are excluded from the definition of potable liquor. Learned Counsel for the petitioner has relied on the recent Supreme Court decision in State of U. P. and others v. Vam Organic Chemicals Ltd. & others, JT 2003 (8) SC 1, and has submitted that the petitioner's case is squarely covered by the aforesaid decision.;