J.E. BILIMORIA AND SONS, NAGPUR Vs. CORPORATION OF CITY OF NAGPUR

JUDGEMENT

(1.) Few facts need be stated to appreciate the grievance of the petitioner. The petitioner deals in liquor and for that purpose holds foreign liquor licence for the sale of foreign liquor in the District of Nagpur. The said licence is granted under the provision of the Bombay Prohibition Act, 1949, hereinafter called 'The Act' and in accordance with the rules framed thereunder, hereinafter called 'The Rules'. Further petitioner holds Foreign Liquor Import Trade Licence as a wholesale dealer in foreign liquor and imports foreign liquor from outside the State of Maharashtra.

(2.) In the year 1970, petitioner applied to the Director of Prohibition and Excise through the Collector, Nagpur, for the purpose of licence for storing in a bonded warehouse the foreign liquor brought within the limits of Nagpur city. Such licence was granted with regard to the premises called 'Assa House, Nagpur' initially on 14-5-1971 and it was not disputed at the hearing that petitioner holds such a licence, presently, the initial licence having been renewed every year.

(3.) The said bonded warehouse licence granted under the provisions of section 26(d) of the Act and is subject to the provisions of the Maharashtra Foreign Liquor (Storage in Bond) Rules, 1964 and the Maharashtra Foreign Liquor (Storage and Supply) Regulations, 1964. The provisions of clause (d) of section 26 of the Act enables the State Government to establish or to licence a warehouse wherein any intoxicant hemp, mhowra flowers or molasses may be deposited and kept without payment of duty. The goods like the foreign liquor which can be bonded under the licence in a warehouse established under section 26(d) of the Act, it is obvious, can be deposited and kept in the bonded state without requiring to pay the duty prescribed by the provisions of section 105 of the said Act. We are here concerned with the duty imposed under the provisions of sub-section (1) of section 105 with regard to alcoholic liquor for human consumption. Sec. 106 of the Act deals with the manner of levying excise duties so imposed under section 105. Clause (a)(ii) of section 106 of the Act states that in the case of an excisable article imported the duty imposed has to be discharged by payment upon issue for sale from a warehouse established or licensed under the provisions of the Act. Similarly, clause (c)(ii) of section 106 of the Act shows that in the case of excisable articles transported, the manner of payment of the duty is by payment upon issue for sale from a warehouse established or licenced under the provisions of the Act. Even with regard to intoxicating drugs, clause (e) of section 106 of the Act shows that if such drugs are warehoused, then the liability has to be discharged by payment at the time of issue from a warehouse established or licensed under this Act. Along with this, reference may be made to the provisions of the Maharashtra Foreign Liquor (Storage in Bond) Rules, 1964 and the Maharashtra Foreign Liquor (Storage and Supply) Regulations, 1964, The Rules define 'bonded warehouse', meaning a place in respect of which a licence for the storage of foreign liquor without payment of duty is granted under Rules 2(2). The term "to store foreign liquor in bond" means to store, deposit or keep foreign liquor in a bonded warehouse without payment of excise duty or countervailing duty or other fees payable thereon under Rules 2(9). Further the bond required to be executed by a licensee of the foreign liquor warehouse and the terms thereof indicate that such a licensee cannot remove for issue from the licensed premises any foreign liquor unless the proper duty and fee have been paid except otherwise provided by the rules. The form of licence authorising storage of foreign liquor lays down conditions with regard to the removal by the licensee of the bonded foreign liquor.