Case Note & Summary
The appellant, M/s Cee Cee & Cee Cee's, held an F.L. 1 License under the Puducherry Excise Act, 1970 for wholesale vending of Indian Made Foreign Liquor (IMFL) at Mahe. On 28.02.2017, the appellant applied to shift the licensed shop from Mahe to Karaikal, a distance of about 650 kilometers, under Rules 163 and 209 of the Puducherry Excise Rules, 1970. The Deputy Commissioner (Excise), Mahe forwarded the application to the Deputy Commissioner (Excise), Karaikal for inspection. Respondent No. 1, a resident of Karaikal, objected, citing a Madras High Court judgment that interpreted 'place' restrictively to mean only within a local area, and argued that shifting from one region to another was impermissible. Despite objections, the Excise Authorities granted permission, leading to multiple writ petitions by Respondent No. 1. The Madras High Court, by a division bench, quashed the permissions, holding that 'place' under the Excise Act and Rules had a restrictive meaning confined to the region where the shop was originally located. The Supreme Court allowed the appeal, setting aside the High Court's judgment. The Court held that the term 'place' in Rule 209 is not territorially restricted; the definition under Section 2(22) of the Excise Act describes the type of structure, not geographical limits. The Excise Act and Rules apply to the whole Union Territory, and Rule 22A's definition of 'region' is limited to Chapter IIA on inter-state transport. Therefore, shifting from Mahe to Karaikal is permissible. The Court restored the permissions granted by the Excise Authorities.
Headnote
A) Excise Law - Shifting of Licensed Premises - Interpretation of 'Place' - Rule 209 of the Puducherry Excise Rules, 1970 - The term 'place' in Rule 209 is not restricted to a particular region but includes any location within the Union Territory of Puducherry. The definition under Section 2(22) of the Puducherry Excise Act, 1970 describes the type of structure, not territorial limits. The Excise Act and Rules apply to the whole of the Union Territory, and Rule 22A defines 'region' only for inter-state transport control. Therefore, shifting of a licensed shop from Mahe to Karaikal is permissible. (Paras 17-18) B) Excise Law - Definition of 'Region' - Rule 22A of the Puducherry Excise Rules, 1970 - The definition of 'region' under Rule 22A is confined to Chapter IIA dealing with inter-state transport of liquor and does not restrict the meaning of 'place' under Rule 209. The High Court erred in importing this definition to limit shifting of shops. (Paras 17-18) C) Excise Law - Licensing Authority's Power - Rule 209 of the Puducherry Excise Rules, 1970 - The Licensing Authority has the power to permit shifting of licensed premises from one place to another within the Union Territory, subject to fulfillment of conditions and payment of fee. The permission granted by the Deputy Commissioner was valid and in accordance with law. (Paras 18-19)
Issue of Consideration
Whether the permission granted by the Excise Authorities to transfer the licensed shop from one region (Mahe) to another (Karaikal) in the Union Territory of Puducherry was permissible under the Puducherry Excise Act, 1970 and the Puducherry Excise Rules, 1970.
Final Decision
The Supreme Court allowed the appeals, set aside the impugned judgment of the Madras High Court dated 14.02.2019, and restored the permissions granted by the Excise Authorities for shifting the licensed shop from Mahe to Karaikal.
Law Points
- Interpretation of 'place' in Rule 209 of the Puducherry Excise Rules
- 1970
- Definition of 'region' under Rule 22A
- Scope of shifting of licensed premises
- Applicability of Excise Act to whole of Union Territory
