Excise policy 2020-21: Legal notice served on excise dept for terminating bottling licence

Chandigarh The move of the BJP-JJP government in Haryana to grant or renew licences for bottling of country liquor (CL) in the state spells legal trouble for the

Chandigarh The move of the BJP-JJP government in Haryana to grant or renew licences for bottling of country liquor (CL) in the state spells legal trouble for the new excise policy. The decision to discontinue licences for bottling country liquor (L-15) was taken in the excise policy for 2020-21 approved by the council of ministers last week.

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Aggrieved by the decision, a Bhiwani-based bottling company, M/s Oasis Resorts Private Ltd has served a legal notice on the principal secretary, excise and taxation commissioner, and others seeking removal of the provisions of the excise policy 2020-21 where by their bottling licence has been discontinued without giving any cogent reason and an opportunity for personal hearing.

The existing annual licence fee for the CL bottling licence was ₹60 lakh while for the combined bottling licence of CL and Indian Made Foreign Spirit (IMFS), the annual licence fee was ₹1.1 crore, as per the 2019-20 excise policy put out by the BJP government last year. In the 2020-21 excise policy, the annual license fee for IMFS bottling licence has been fixed at ₹1 crore and the CL bottling licence has been discontinued.

The legal notice served by senior Punjab and Haryana High Court lawyer, Vikram Jain under instructions from Rajender Godara, the authorised representative of Oasis Resorts, said that principle of natural justice was not followed while cancelling the L-15 license of his client.

“We will move the high court if the policy is not rectified by the state government. It is not open to the excise department to cancel/discontinue any classification of the licence without amending the relevant Act and the Rules,’’ Jain said. The bottling company has sought continuation of the licence in the new excise policy citing massive investment, generation of employment opportunities and revenue generation for the state in the past three years.

Challenge cites SC rulings

“Our client is the holder of L-11 and L-15 liquor licence for a long time and had approached the excise department, in 2016 for setting up new CL and IMFL bottling plant at Devawas village in Bhiwani. The grant of letter of intent for setting up of new CL and IMFL bottling plant was issued by the excise and taxation Commissioner in May 2016. The client fulfilled all the conditions imposed by excise department by making massive investment, getting requisite no objection certificate etc, for setting up of bottling plant in Bhiwani and was granted bottling licence on in May 2017,’’ said the counsel for the plaintiff.

Citing Supreme Court rulings, Jain added that the apex court in Khoday distilleries versus state of Karnataka has held that any discrimination by state in liquor business will be a violation of the Constitution. “When the state permits trade or business in the potable liquor with or without limitation, the citizen has the right to carry on trade or business subject to the limitations, if any, and the state cannot make discrimination between the citizens who are qualified to carry on the trade or business,” read the SC order.