Sangeet Lodha, J. - (1.) THIS writ petition is directed against the demand of 50% of the license fee quantified at Rs. 12,50,000/ - raised by the Additional Commissioner, Excise, Rajasthan, Jaipur, for the substitution of the name of the petitioner company in place of M/s. Narang Distillery Limited, in the license issued in favour of the said company, to manufacture spirit from grain base in its Distillery situated at village Sundani, District Banswara.
(2.) THE facts relevant are that M/s. Narang Distillery Limited, a company incorporated under the provisions of Companies Act, 1956 (for short "the Act of 1956"), was granted a license to manufacture spirit from grain base in its Distillery situated at village Sundani, District Banswara, under Rule 4 of Rajasthan Distillery Rules, 1977. The license was renewed from time to time and was valid upto 31.3.13. The company by a special resolution adopted and with the approval of the Central Government in writing, changed its name from M/s. Narang Distillery Limited to M/s. Starlight Bruchem Limited, in terms of the provisions of Section 21 of the Act of 1956. Consequent upon the change of the name, fresh certificate of incorporation was issued by the Registrar of Companies, Uttar Pradesh on 27.6.11, pursuant to Section 23 of the Act of 1956. Thereafter, an application accompanied by the relevant documents was submitted by the company to the Commissioner, Excise, Rajasthan, Udaipur for change of name of the company in the record of the Department of Excise, Government of Rajasthan. The Additional Commissioner, Excise vide communication dated 21.9.12 sought clarification as to whether the owner of both the units are the same or different, which was responded to by the petitioner vide communication dated 10.11.12 accompanied by requisite documents, clarifying that it is only the case of change of the name of the company and the license issued has not been transferred to a different company. However, the Additional Excise Commissioner, Rajasthan, Jaipur vide communication dated 1.1.13 addressed to the District Excise Officer, Banswara with the copy endorsed to the Manager, M/s. Narang Distillery Limited, directed that the petitioner company may be directed to deposit 50% amount of the license fee and bond license fee quantified at Rs. 12.50 lacs as per the provisions of Rule 72B of the Rajasthan Excise Rules, 1956 (for short "the Rules of 1956"), for the change of the name of the company from M/s. Narang Distillery Limited to Starlight Bruchem Limited. Hence, this petition. Precisely, the case of the petitioner is that in terms of Rule 72B of the Rules of 1956, 50% of the license fee is required to be paid only in case where the license issued is sold or transferred and since in the instant case, the petitioner has applied for only the change of name of the company in the record and there is no transfer of the license from the petitioner company to another company and therefore, the demand raised for 50% of the license fee in terms of the provisions of Rule 72B of the Rules of 1956, is ex facie illegal and without jurisdiction.
(3.) THE respondents in their reply to the writ petition has taken the stand that the petitioner has not given the details of shareholding structure of the company prior to the change of the name and thereafter. It is submitted that the change of name of the company involve amendments in the Memorandum of Association and Articles of Association, however, the petitioner has not furnished the details in this regard. It is submitted that instead of supplying the information sought by the Department of Excise, the petitioner indulged in sending irrelevant communications. It is submitted that the petitioner has not produced any document showing that the legal entity of the company remains the same and therefore, the demand raised is absolutely in conformity with the provisions of Rule 72B of the Rules of 1956.;