Refusal of Licence for IMFL: Delhi HC dismisses WP on Availability of Express Appeal u/s 72 of Excise Act [Read Order]

In a significant case, the Delhi High Court dismissed the Writ Petition on refusal of licence for Indian-Made Foreign Liquor (IMFL) since there was an option for express appeal under 72 of the Excise Act, 2009. The Petitioner - Pernod Ricard India Pvt. Ltd. has challenged the impugned order passed by the Office of the Commissioner Excise, Entertainment and Luxury Tax, Government of the National Capital Territory of Delhi (GNCTD) (‘licensing authority’) by which the L-1 License application made by it before the Respondent No.2 – Department of Excise, Government of National Capital Territory (NCT) of Delhi has been rejected. The Petitioner is a private limited company engaged in the manufacturing and bottling of IMFL and has a substantial market presence across India, especially in the National Capital of Delhi (NCTD). It was stated from 1993-till 2021 the Petitioner held valid licenses for the sale of liquor in NCTD. It held licenses for its different units located at various locations in India including units located in Uttar Pradesh, Punjab, Madhya Pradesh etc. The Petitioner last held a valid L-1 License issued by the GNCTD for its two units namely, M/s Gwalior Alcobrew Pvt. Ltd (Gwalior Unit) and Village Haripur Hindu, Derabassi, Distt. Mohali, Punjab (Mohali Unit) till 16th November 2021. The Delhi Excise Policy, 2021 (“Excise Policy, 2021”) was notified by the GNCTD and brought into effect on 17th November 2021. The Excise Policy, 2021 put in place various modifications and amendments about the eligibility criteria, procedures for application and grant of licenses, and license fees payable for L-1 Licenses and brand registration. Since the Petitioner was undertaking liquor manufacturing activities in different states, it was ineligible to hold L-1 Licenses under the Excise Policy, 2021. Consequently, the Petitioner did not undertake wholesale vending of Indian/ foreign liquor under the Excise Policy, 2021. The GNCTD vide notification issued a new policy specifying terms and conditions for issuance of L-1 Licenses for the licensing year 2022-2023 w.e.f. 1st September 2022. Under the new policy, the disqualification imposed on manufacturers from applying for L-1 Licenses, under the 2021 policy was lifted. Thus, even liquor manufacturers could apply and obtain an L1 license under the L1 Policy, 2022. The proposition sought to be urged that even for Section 13 of the Excise Act, 2009, a conviction would be required, which would be contrary to the express language of the statute. The Licensing Authority in the impugned order thinks that the same does not constitute good moral character and reveals criminal background, due to the criminal proceedings initiated by the CBI and ED. A single-judge bench comprising Justice Prathiba M. Singh observed that the impugned order has been passed by the Office of the Excise Commissioner under the signature of the Deputy Commissioner Excise. The said order is appealable under Section 72 of the Excise Act, 2009. Further, the impugned order itself records that the Petitioner is at liberty to file an appeal against the order before the Appellate Authority, in terms of Section 72 of the Excise Act, 2009. The Petitioner can seek a hearing before the Appellate Authority which can go into factual and legal issues. In such an appeal, the Petitioner under Section 72(5) can raise various grounds including the filing of additional evidence. While dismissing the petition, the Court held that “the present writ is not maintainable in view of the express statutory provision which permits the Petitioner to approach the Appellate Authority against the impugned order dated 13th April 2023 in term of section 72 of the Excise Act, 2009.” Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

Refusal of Licence for IMFL: Delhi HC dismisses WP on Availability of Express Appeal u/s 72 of Excise Act [Read Order]

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Refusal of Licence for IMFL: Delhi HC dismisses WP on Availability of Express Appeal u/s 72 of Excise Act [Read Order]

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