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
Source-derived case record
Summary, issues, holding and outcome
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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
Legal Issues
- 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.
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