Bombay High Court Allows Collector to Consider Suspension on Remand in Excise Licence Case — Remand Not Restricted to Fine Only. The Court held that the Collector could consider suspension of licence and subsequent facts on remand from the Minister under the Maharashtra Excise Act, 1915.

High Court: Bombay High Court Bench: GOA In Favour of Prosecution
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Case Note & Summary

The petitioner, a CL-III licence holder, was issued a show cause notice for selling a 180 ml country liquor bottle worth Rs.17.80 at Rs.18, an overcharge of 20 paise. The Collector suspended his licence by order dated 16/4/2007. The petitioner appealed to the Minister, who by order dated 30/9/2009 set aside the suspension and remanded the matter to the Collector for reconsideration of the fine of Rs.25,000/-. The petitioner then filed a writ petition challenging the Collector's subsequent order dated 15/12/2010, which not only imposed the fine but also suspended the licence. The petitioner argued that the remand was limited to fine only. The Court examined the Minister's order and found that it set aside the suspension and remanded for reconsideration of the fine, but did not restrict the Collector from considering suspension. The Court held that the Collector could consider suspension and also take into account facts that transpired after the Minister's order. The writ petition was dismissed.

Headnote

A) Excise Law - Remand - Scope of Remand - Maharashtra Excise Act, 1915 - The question was whether on remand the Collector could consider suspension of licence or only the fine of Rs.25,000/-. The Court held that the remand by the Minister was not restricted to fine alone; the Collector could consider suspension and also take into account subsequent facts. (Paras 2, 5-6)

B) Excise Law - Suspension of Licence - Collector's Powers - Maharashtra Excise Act, 1915 - The petitioner's CL-III licence was suspended by the Collector for selling liquor at a higher price. The Minister remanded the matter for reconsideration of fine. The Court held that the Collector could consider suspension as well as subsequent facts. (Paras 3-6)

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Issue of Consideration

Whether on remand the Collector is entitled to consider the issue of suspension of licence or remand is restricted only to consideration of imposition of fine of Rs.25,000/- levied on the petitioner and also whether the Collector would be entitled to take into consideration the facts which have transpired after the order was passed by the Hon'ble Minister.

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Final Decision

The writ petition is dismissed. Rule discharged with no order as to costs.

Law Points

  • Remand powers
  • Scope of remand
  • Suspension of licence
  • Fine imposition
  • Collector's authority
  • Maharashtra Excise Rules
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Case Details

2011 LawText (BOM) (06) 167

Writ Petition No.266 of 2011

2011-06-16

R.M. Savant, J.

Mrs. P.M. Chandekar for petitioner; Mrs. B.H. Dangre, Additional Government Pleader for respondents

Shri Pruthviraj s/o Parmeshwarlal Jaiswal

The State of Maharashtra, through the Minister, Department of State Excise, Mantralaya, Mumbai; The Collector, Akola

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Nature of Litigation

Writ petition challenging the Collector's order imposing fine and suspending licence on remand.

Remedy Sought

Petitioner sought to quash the Collector's order dated 15/12/2010 and to restrict remand to fine only.

Filing Reason

Petitioner alleged that the Collector exceeded the scope of remand by considering suspension and subsequent facts.

Previous Decisions

Collector suspended licence on 16/4/2007; Minister set aside suspension and remanded for reconsideration of fine on 30/9/2009; Collector passed order on 15/12/2010 imposing fine and suspending licence.

Issues

Whether on remand the Collector is entitled to consider the issue of suspension of licence or remand is restricted only to consideration of imposition of fine of Rs.25,000/-. Whether the Collector would be entitled to take into consideration the facts which have transpired after the order was passed by the Hon'ble Minister.

Submissions/Arguments

Petitioner argued that the Minister's remand was limited to reconsideration of fine only, and the Collector could not suspend the licence or consider subsequent facts. Respondents argued that the remand was not restricted and the Collector could consider all aspects including suspension and subsequent facts.

Ratio Decidendi

On remand, the authority is not restricted to the specific issue mentioned in the remand order unless expressly limited; the Collector could consider suspension of licence and also take into account facts that transpired after the Minister's order.

Judgment Excerpts

The short question, which arises for consideration in the above writ petition is as to whether on remand the concerned Authority, i.e. Collector is entitled to consider the issue of suspension of licence or remand is restricted only to consideration of imposition of fine of Rs.25,000/- levied on the petitioner and also whether the Collector would be entitled to take into consideration the facts, which have transpired after the order was passed by the Hon'ble Minister. In the light of the above, the order passed by the Collector dated 15/12/2010 cannot be faulted. The writ petition is accordingly dismissed.

Procedural History

Collector suspended licence on 16/4/2007. Petitioner appealed to Minister, who set aside suspension and remanded for reconsideration of fine on 30/9/2009. Collector passed order on 15/12/2010 imposing fine and suspending licence. Petitioner filed writ petition on 2011-06-16.

Acts & Sections

  • Maharashtra Excise Act, 1915:
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