M/S. MODERN HOTEL versus COMMISSIONER OF EXCISE & ORS.

M/S. MODERN HOTEL versus COMMISSIONER OF EXCISE & ORS.

Appellant is not entitled to refund of Rs. 50 Lacs deposited during licence renewals as the amount had already been appropriated towards interest prior to Amnesty Scheme; amnesty applies only to arrears of interest outstanding in 2008; respondents’ insistence on clearance of 50% arrears for renewal was within legal rights; exercise of writ jurisdiction for defaulter would be inappropriate.

Parties
Appellant: M/s. Modern Hotel; Respondents: Commissioner of Excise & Ors.
Jurisdiction
India
Judgment Date
19 August 2015
Procedural Posture
Civil Appeal / Final Judgment on Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Excise Licence Renewal, Abkari Arrears, Amnesty Scheme, Disqualification of Partnership Firm Due to Partner's Liability
Excise Law Partnership Law Excise Licence Renewal Abkari Arrears Amnesty Scheme Disqualification of Partnership Firm Due to Partner's Liability

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Parties

M/s. Modern Hotel

Appellant

Commissioner of Excise & Ors.

Respondents

Procedural Posture

Civil Appeal / Final Judgment on Appeal From High Court Judgment

Legal Issues

  1. 1 Whether appellant is entitled to refund of Rs. 50 Lacs after payment under the Amnesty Scheme
  2. 2 Interpretation of proviso to Rule 13A(5) of Foreign Liquor Rules regarding licence renewal and arrears payment
  3. 3 Disqualification of partnership firm due to one partner's abkari arrears

Ratio Decidendi

Appellant is not entitled to refund of Rs. 50 Lacs deposited during licence renewals as the amount had already been appropriated towards interest prior to Amnesty Scheme; amnesty applies only to arrears of interest outstanding in 2008; respondents’ insistence on clearance of 50% arrears for renewal was within legal rights; exercise of writ jurisdiction for defaulter would be inappropriate.

Court Disposition

Appeal dismissed

Orders

  • Appellant is required to redeposit Rs. 50 Lacs within six weeks to meet liability under security furnished per interim order dated 18.1.2010
  • Appellant to pay interest at 6% per annum from date of receipt till redeposit