Kerala High Court
Virutcha Private Limited vs Deputy Commissioner Of Excise on 4 March, 2021
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V
THURSDAY, THE 04TH DAY OF MARCH 2021 / 13TH PHALGUNA, 1942
WP(C).No.26762 OF 2020(U)
PETITIONER/S:
VIRUTCHA PRIVATE LIMITED,
14/18, KASI VISWANATHAN STREET, SHEVAPET,
SALEM-636 002, REPRESENTED BY ITS MANAGING DIRECTOR.
BY ADVS.
SRI.DEEPU THANKAN
SMT.UMMUL FIDA
SMT.LAKSHMI SREEDHAR
RESPONDENT/S:
1 DEPUTY COMMISSIONER OF EXCISE,
KSBC (H.Q.), BEVCO TOWER, VIKASBHAVAN, PALAYAM,
THIRUVANANTHAPURAM-695033.
2 KERALA STATE BEVERAGES (M AND M) LTD. ,
BEVCO TOWER, VIKASBHAVAN, PALAYAM,
THIRUVANANTHAPURAM-695033, REPRESENTED BY ITS
MANAGING DIRECTOR.
* ADDL.R3 IMPLEADED:
3 ADDL.R3:
EXCISE COMMISSIONER,
KERALA EXCISE DEPARTMENT, EXCISE HEAD QUARTERS,
NANDAVANAM, VIKAS BHAVAN P.O.,
THIRUVANANTHAPURAM - 695 033.
* ADDITIONAL 3RD RESPONDENT IS IMPLEADED AS PER ORDER
DATED 28.01.2021 IN I.A.1/2021 IN WP(C)26762/2020.
R2 BY SRI.NAVEEN.T., SC, KERALA STATE BEV.CO. M. AND
M.LTD.
SMT MABLE C KURIAN, GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
04.03.2021, ALONG WITH WP(C).3144/2021(P), THE COURT ON THE SAME
DAY DELIVERED THE FOLLOWING:
WP(C).Nos.26762 OF 2020(U)&
3144 OF 2021 2
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V
THURSDAY, THE 04TH DAY OF MARCH 2021 / 13TH PHALGUNA, 1942
WP(C).No.3144 OF 2021(P)
PETITIONER/S:
VIRUTCHA PRIVATE LIMITED,
14/18, KASI VISWANATHAN STREET, SHEVAPET, SALEM -
636002, REPRESENTED BY ITS MANAGING DIRECTOR.
BY ADVS.
SRI.DEEPU THANKAN
SMT.UMMUL FIDA
SMT.LAKSHMI SREEDHAR
RESPONDENT/S:
1 EXCISE COMMISSIONER,
KERALA EXCISE DEPARTMENT, EXCISE HEAD QUARTERS,
NANDAVANAM, VIKASBHAVAN P. O.,
THIRUVANANTHAPURAM - 695 033.
2 DEPUTY COMMISSIONER OF EXCISE,
KSBC (H.Q.), BEVCO TOWER, VIKASBHAVAN, PALAYAM,
THIRUVANANTHAPURAM - 695 033.
3 KERALA STATE BEVERAGES (M AND M) CORPORATION LTD.,
BEVCO TOWER, VIKASBHAVAN, PALAYAM, THIRUVANANTHAPURAM -
695 033., REPRESENTED BY ITS MANAGING DIRECTOR.
* ADDL.R4 IMPLEADED:
4 ADDL.R4:
GOVERNMENT OF KERALA, TAXES DEPARTMENT,
THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY,
PIN-695 002.
* ADDITIONAL 4TH RESPONDENT IS IMPLEADED AS PER ORDER
DATED 04.03.2021 IN I.A.2/2021.
R3 BY SRI.NAVEEN.T., SC, KERALA STATE BEV.CO. M. AND
M.LTD.
SMT MABLE C KURIAN, GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
04.03.2021, ALONG WITH WP(C).26762/2020(U), THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C).Nos.26762 OF 2020(U)&
3144 OF 2021 3
JUDGMENT
The Virutcha Private Limited, a company incorporated under the
Companies Act, 1956, is the petitioner in these writ petitions. The said
company is based in Goa and is engaged in the business of manufacturing
and supplying Indian Made Foreign Liquor (IMFL). According to the
petitioner, they have been supplying IMFL to the Kerala State Beverages
Corporation (M & M) Ltd., the 2nd respondent herein.
2. W.P.(C) No.26762 of 2020 has been filed seeking a direction to
revalidate Exts.P3 to P8 permits or in the alternative, for a direction to the
2nd respondent to consider Ext.P12 request for revalidation. During the
pendency of the writ petition, the request for revalidation was rejected as
per proceedings of the Excise Commissioner, Kerala dated 1.2.2021. The
above order is the subject matter of challenge in W.P.(C) No.3144 of 2021.
3. I have heard Sri.Deepu Thankan, the learned counsel appearing
for the petitioner, who would refer to Rule 12A of the Foreign Liquor Rules,
1953 and it is submitted that the petitioner is required to submit the request
for revalidation to the Commissioner of Excise within a month from the date
of expiry of the permit through the permit issuing authority along with a
WP(C).Nos.26762 OF 2020(U)&
revalidation fee of Rs.10,000/- in favour of the Commissioner of Excise
through the Assistant Excise Commissioner, the KSBC. According to the
learned counsel, the permits for importing intoxicating liquor issued to the
petitioner which have been produced as Exts.P3 to P8 in W.P.(C) No.3144 of
2021 would show that those permits were revalidated for a period of 30
days from 25.9.2020 on effecting payment of Rs.60,000/- per permit. The
said period was due to expire only on 24.10.2020. The petitioner applied for
revalidation on 23.11.2020, which fact is undisputed. He contends that the
period was wrongly calculated and his request for issuance of challan was
rejected on the premise that the one month period had expired on
22.11.2020. Placing reliance on Section 3(35) of the General Clauses Act,
1897, it is contended by the learned counsel that the 'month' as referred to
in Section 12A (i) of the Rules would mean a month reckoned according to
the British calendar. To bring home his contention that the dates were
erroneously calculated Sri. Deepu Thankan would profusely rely on the
counter affidavit filed by the 2nd respondent on 7.12.2020 wherein it is
stated that in the light of the Rules, the revalidation request should be
submitted to the Excise Department on or before 22.11.2020, but the same
was received only on 23.11.2020. According to the learned counsel, if the
period is calculated in terms of the Rules, the request for revalidation
submitted by the petitioner on 23.11.2020 was well within time and hence,
WP(C).Nos.26762 OF 2020(U)&
the rejection of their request for revalidation is clearly illegal.
4. Smt.Mable C. Kurian, the learned Government Pleader,
submitted that no application for revalidation of the permit was received by
the office of the Deputy Commissioner of Excise, Headquarters within the
stipulated grace period and hence, the rejection of his request was in
accordance with the rules and regulations. It is submitted by the learned
Government Pleader that the petitioner has already approached the
Government with a revision petition and in that view of the matter, the
petitioner be relegated to their statutory remedy.
5. Sri.T.Naveen, the learned standing counsel appearing for the
KSBC submitted that the one month mentioned for the revalidation of permit
would refer to 30 days and this has been the consistent stand taken by the
Excise Department. If that be the case, the revalidation request ought to
have reached the Excise Department on or before 22.11.2020. It is further
stated that along with the revalidation request, the petitioner was required
to produce a ''non execution certificate', the revalidation fee of Rs.60,000/-
and a sum of Rs.60,000/- by way of penalty. However, these payments were
not effected. In that view of the matter, the rejection for non compliance
with the Rules was well in order.
6. I have considered the submissions advanced. It appears from
WP(C).Nos.26762 OF 2020(U)&
the submissions that challenging the order passed by the Excise
Commissioner, the petitioner herein has preferred a revision petition before
the Government invoking Rule 40 of the Foreign Liquor Rules, 1953.
Sri.Deepu Thankan, the learned counsel submitted that it would be in the
fitness of things to issue necessary directions to the additional 4th
respondent to consider the contentions of the petitioner as reiterated in the
revision petition with particular emphasis on the interpretation of the term
'month' as defined in Rule 12A of the Foreign Liquor Rules and also to pass
orders within a time frame.
Having considered the facts and circumstances and the submissions
made across the bar, it is felt that it would be proper for the petitioner to
raise all his contentions before the revision forum. In that view of the
matter, these writ petitions are disposed of with a direction to the Additional
4th respondent to take up the revision petition produced as Ext.P15 in W.P.
(C) No.3144 of 2021 and take a decision preferably within a period of two
months from the date of receipt of a copy of this judgment.
SD/-
RAJA VIJAYARAGHAVAN V
JUDGE
ps
WP(C).Nos.26762 OF 2020(U)&
APPENDIX OF WP(C) 26762/2020
PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE NOTIFICATION
NO.KSBC/MD/140/LIQ./2019-2020 DATED
24.1.2019.
EXHIBIT P2 TRUE COPY OF THE LETTER ISSUED TO THE
PETITIONER BY THE SECOND RESPONDENT
CORPORATION DATED 12.7.2019.
EXHIBIT P3 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3627 DATED 27.2.2020.
EXHIBIT P4 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3628 DATED 27.2.2020.
EXHIBIT P5 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3629 DATED 27.2.2020.
EXHIBIT P6 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3630 DATED 27.2.2020.
EXHIBIT P7 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3632 DATED 27.2.2020.
EXHIBIT P8 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3634 DATED 27.2.2020.
EXHIBIT P9 TRUE COPY OF THE LETTER BEARING NO.BX2-
322/2020(4) DATED JUNE, 2020.
EXHIBIT P10 TRUE COPY OF THE REQUEST BY THE
PETITIONER DATED 31.7.2020.
EXHIBIT P11 TRUE COPY OF THE LETTER OF THE ASSISTANT
COMMISSIONER OF EXCISE, GOVERNMENT OF
GOA, DATED 31.7.2020.
EXHIBIT P12 TRUE COPY OF THE REQUEST SUBMITTED BY
THE PETITIONER TO THE SECOND RESPONDENT
DATED NIL.
EXHIBIT P13 TRUE COPY OF THE LETTER ISSUED BY THE
SUPERINTENDENT OF EXCISE, GOVERNMENT OF
GOA DATED 23.11.2020.
WP(C).Nos.26762 OF 2020(U)&
EXHIBIT P14 TRUE COPY OF THE LETTER DATED 17.12.2020
OF THE 2ND RESPONDENT.
RESPONDENT'S/S EXHIBITS:
EXHIBIT R2(a) TRUE COPY OF THE COMMUNICATION DATED
01.04.2019 ISSUED BY THE MANAGING
DIRECTOR OF THE CORPORATION.
EXHIBIT R2(b) TRUE COPY OF THE CIRCULAR DATED
11.04.2018 ISSUED BY THE EXCISE
COMMISSIONER.
EXHIBIT R2(c) TRUE COPY OF THE LETTER DATED 13.11.2018
ISSUED BY THE EXCISE DEPARTMENT.
EXHIBIT R2(d) TRUE COPY OF THE PROCEEDINGS DATED
01.02.2021 ISSUED BY THE EXCISE
COMMISSIONER.
//TRUE COPY// P.A.TO JUDGE
WP(C).Nos.26762 OF 2020(U)&
APPENDIX OF WP(C) 3144/2021
PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE NOTIFICATION
NO.KSBC/MD/140/LIQ/2019-2020 DATED
24.01.2019.
EXHIBIT P2 TRUE COPY OF THE LETTER ISSUED TO THE
PETITIONER BY THE SECOND RESPONDENT
CORPORATION DATED 12.07.2019.
EXHIBIT P3 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3627 DATED 27.02.2020.
EXHIBIT P4 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3628 DATED 27.02.2020.
EXHIBIT P5 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3629 DATED 27.02.2020.
EXHIBIT P6 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3630 DATED 27.02.2020.
EXHIBIT P7 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3632 DATED 27.02.2020.
EXHIBIT P8 TRUE COPY OF THE PERMIT NO.IP-IMF/2019-
20/3634 DATED 27.02.2020.
EXHIBIT P9 TRUE COPY OF THE LETTER BEARING NO.BX2-
322/2020(4) DATED JUNE 2020.
EXHIBIT P10 TRUE COPY OF THE REQUEST BY THE PETITIONER
DATED 31.07.2020.
EXHIBIT P11 TRUE COPY OF THE LETTER OF THE ASSISTANT
COMMISSIONER OF EXCISE, GOVERNMENT OF GOA,
DATED 31.07.2020.
EXHIBIT P12 TRUE COPY OF THE REQUEST SUBMITTED BY THE
PETITIONER TO THE SECOND RESPONDENT DATED
NIL.
EXHIBIT P13 TRUE COPY OF THE LETTER ISSUED BY THE
SUPERINTENDENT OF EXCISE, GOVERNMENT OF GOA
DATED 23.11.2020.
WP(C).Nos.26762 OF 2020(U)&
EXHIBIT P14 TRUE COPY OF THE PROCEEDINGS OF THE FIRST
RESPONDENT DATED 01.02.2021.
EXHIBIT P15 TRUE COPY OF THE REVISION DATED 17/02/2021
FILED BY THE PETITIONER.
RESPONDENT'S/S EXHIBITS: NIL
//TRUE COPY// P.A.TO JUDGE
