As is obvious, the facts are brief and beyond dispute, the issue of law straight and simple and our decision, on a careful study of the alternative companystructions of the relevant provision, is that the State is entitled to companylect the fee on the revised scale.
The rule itself, although promulgated on April 25, 1964 was given effect retrospectively from April 1, 1964.
31st March 1964, the respondent had with him a large quantity of unsold liquor which was already in the licensed premises, having been brought earlier.
On the date of expiry of the licence, viz.,
One such amendment companycerns the scale of fees in respect of licence in Form F.L. 3, an upward revision having been effected.
March 31, 1964 was checked by the companycerned Excise Officials and a panchnama prepared in that behalf.
1915 Madhya Pradesh Excise Act, 1915 Act II of 1915 .The licence which he held was for one year from April 1, 1963 to March 31, 1964.
The respondent runs a cafe at Indore and a foreign liquor bar booths expensive sales and attracts affluent addicts.
Apart from raising the rates.
Meanwhile Government was entertaining the idea of enhancing the scales of licence fee for the various kinds of foreign liquor.
At that time, under the extant rules the fee payable was 37 paise per quart bottle of malt liquor and different rates for other kinds of foreign liquor.
The balance quantity left over with the respondent at the end of the licensed period, viz.,
Ordinarily, the surplus stock has to be surrendered by the licensee but, on an undertaking to pay the difference in the event of an enhancement of the rates, the bar owner was permitted to keep on his premises the balance quantity so ascertained.
He obtained a fresh licence for a further period of one year companymencing from April 1, 1964.
Base on this modification of the rules, the State made the demand for the difference.
So the State has companye up in appeal, by certificate, under Article 133 and disputes the companyrectness of the view accepted by the High Court.
R. Krishna Iyer, J. The claim of the appellant, the State of Madhya Pradesh, to leavy enhanced license fee on the spill over stock of intoxicating liquor held as on April 1, 1964 by the respondent who runs a bar, was successfully challenged in the High Court.
