STATE OF MADHYA PRADESH versus M/S. K.C.T. DRINKS LTD.

STATE OF MADHYA PRADESH versus M/S. K.C.T. DRINKS LTD.

The State Government is entitled under Sections 18 and 27 of the M.P. Excise Act, 1915, to recover the full costs of supervision and establishment of excise staff posted at licensed premises as part of the price or consideration for granting a licence. Such a condition in the licence is not illegal or ultra vires.

Source-derived case information.

Parties
Appellant: State of Madhya Pradesh and Ors.; Respondent: M/s. K.C.T. Drinks Ltd.
Jurisdiction
India
Judgment Date
04 March 2003
Procedural Posture
Civil Appeal / Final Supreme Court Judgment
Outcome
Appeal allowed; High Court judgment and order set aside.
Legal Topics
Excise Licence, Establishment Costs, Supervisory Charges, Validity of Licence Conditions
Excise Law Excise Licence Establishment Costs Supervisory Charges Validity of Licence Conditions

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Parties

State of Madhya Pradesh and Ors.

Appellant

M/s. K.C.T. Drinks Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Supreme Court Judgment

  1. 1 Whether the State Government can levy the full costs of supervision and establishment of excise staff posted at the licensee's premises as a condition of granting an excise licence

Ratio Decidendi

The State Government is entitled under Sections 18 and 27 of the M.P. Excise Act, 1915, to recover the full costs of supervision and establishment of excise staff posted at licensed premises as part of the price or consideration for granting a licence. Such a condition in the licence is not illegal or ultra vires.

Court Disposition

Appeal allowed; High Court judgment and order set aside.

Orders

  • Impugned judgment and order passed by the High Court is set aside.
  • No order as to costs.