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Kerala High Court
K.A.James vs The Excise Commissioner on 21 January, 2026
WP(C) NO. 23638 OF 2024 1
2026:KER:4929
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
WEDNESDAY, THE 21ST DAY OF JANUARY 2026 / 1ST MAGHA, 1947
WP(C) NO. 23638 OF 2024
PETITIONER:
K.A.JAMES,
AGED 58 YEARS
S/O.K.A.ANTONY, KARAIKATTU HOUSE, KARINILAM KARA,
ERUMELY NORTH VILLAGE,KANJIRAPPALLY TALUK,
KOTTAYAM DISTRICT, PIN - 686513
BY ADVS.
SHRI.M.G.KARTHIKEYAN
SRI.NIREESH MATHEW
SRI.C.C.THOMAS (SENIOR)
RESPONDENTS:
1 THE EXCISE COMMISSIONER,
COMMISSIONERATE OF EXCISE, EXCISE HEADQUARTERS,
NANDAVANAM, THIRUVANANTHAPURAM, PIN - 695033
2 THE JOINT EXCISE COMMISSIONER,
NORTHERN ZONE, EXCISE HEAD QUARTERS,NANDAVANAM,
THIRUVANANTHAPURAM, PIN - 695033
3 THE DEPUTY COMMISSIONER OF EXCISE,
KOTTAYAM DIVISION, COLLECTORATE (P.O),
KOTTAYAM, PIN - 686002
4 THE CIRCLE INSPECTOR OF EXCISE,
EXCISE CIRCLE OFFICE, MINI CIVIL STATION,
PONKUNNAM, KOTTAYAM DISTRICT, PIN - 686506
5 THE EXCISE INSPECTOR,
EXCISE RANGE OFFICE, ERUMELI, ERUMELI
P.O,KOTTAYAM DISTRICT, PIN - 686509
WP(C) NO. 23638 OF 2024 2
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6 SUMA AJAYAKUMAR,
D/O.DAMODARAN, PUTHANNADAYIL HOUSE,
MUNDAKKAYAM, ERUMELI NORTH, KANJIRAPPALLY,
KOTTAYAM DISTRICT, PIN - 686509
7 THOMAS MATHEW,
S/O.MATHEW, KOCHUMANIKKUNNEL HOUSE, SPRINGVALLEY,
PERIYAR, PEERUMEDU, IDUKKI DISTRICT, PIN - 685509
8 STATE OF KERALA,
REP. BY SECRETARY, TAXES (A) DEPARTMENT
(EXCISE),GOVT. SECRETARIAT, THIRUVANANTHAPURAM,
PIN - 695001
BY ADVS.
GOVERNMENT PLEADER
SRI.BABU JOSE
SHRI.ATHUL POULOSE
OTHER PRESENT:
SMT. DEVI SHRI R., GP
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 21.01.2026, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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JUDGMENT
The petitioner, along with respondents 6 and 7, got the
allotment of toddy shops in Group No. I of the Erumely excise
range in Kottayam Division for the year 2020-23, which was
extended till 30.09.2023 as per separate agreements executed
between the petitioner and respondents 6 and 7. Toddy shop No. 3,
Amaravathi Toddy Shop, was conducted by the petitioner
separately. The 6th respondent conducted toddy shop Nos.1, 2 and
4, while the 7th respondent conducted toddy shop Nos.5 and 6.
2. On the request of the petitioner, a preference
certificate for participating in one-time registration for conducting
the sale of toddy shops for the years 2023-26 was issued on
10.09.2023 by the Circle Inspector of Excise, Ponkunnam. An
Abkari case under Section 57 (aa) was registered on 14.09.2023
against the petitioner following receipt of a chemical analysis
report indicating the presence of starch in a sample taken from the
toddy shop operated by the petitioner.
3. Based on the registration of the Abkari case, the
preference certificate dated 10.09.2023 issued to the petitioner was
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cancelled. The petitioner compounded the offence by paying a fine
of Rs.25,000/- (Rupees twenty five thousand only) as per the order
dated 23.09.2023 by the Deputy Commissioner of Excise, Kottayam.
The Government had clarified on 25.10.2023, as per R1(a), that
there is no bar in granting preference under Rule 5(1)(a) of the
Kerala Abkari Shops Disposal Rules, 2002, to those who have
compounded offences under the Abkari Act and remitted the fine.
Even though the offences were compounded, on the ground that
the petitioner had not submitted an online application for
participating in the sale of toddy shops for the year 2023-26, it was
found that he was not eligible for getting an allotment for a toddy
shop. Accordingly, the revision preferred by the petitioner was
rejected through Ext.P13 by the Excise Commissioner and was
confirmed by the Government in Ext.P18.
4. The learned Senior counsel for the petitioner submits
that the cancellation of the preference certificate was wrong even
going by the stand of the Government, which is found by the
authorities in Exts.P13 and P18, and therefore, the rejection of the
revision on the ground that the petitioner has not submitted any
online application for the sale of the toddy shop for the years 2023-
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26 is wrong. If the petitioner was entitled to the preference
certificate, as the offence was compounded, the consequences
should have followed.
5. The learned senior counsel for the petitioner submits
that the petitioner may be permitted to participate in the sale of
toddy shops for the coming year, along with respondents 6 and 7,
on the strength of the findings entered in his favour even in the
impugned orders.
6. This Court had passed an order on 14.01.2026 directing
the learned Government Pleader to get instructions on the request
made on behalf of the petitioner to permit him to apply along with
respondents 6 and 7 for the coming year.
7. The learned Government Pleader submits that it could
depend on the Abkari policy for the coming year. However, the
conclusion in the orders impugned, despite the findings in favour
of the petitioner, the effect of the cancellation of the preference
certificate after compounding, cannot be sustained.
8. Under such circumstances, the finding in the impugned
orders that since the petitioner has not made any online
application, which he could not have made as he was already
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granted a preference certificate, cannot be sustained and
accordingly, Exts.P13 and P18 are quashed. It will be open to the
petitioner to make a request before the authorities concerned to
permit him to apply along with respondents 6 and 7 for the coming
year. Orders shall be passed by the authorities in accordance with
law and with notice to the petitioner and respondents 6 and 7.
The writ petition is allowed as above.
Sd/-
MOHAMMED NIAS C.P.
JUDGE
Anu
2026:KER:4929
APPENDIX OF WP(C) NO. 23638 OF 2024
PETITIONER EXHIBITS
Exhibit P1 TRUE PHOTOCOPY OF THE CRIME AND OCCURRENCE
REPORT IN CR.NO.123/2023 REGISTERED BY THE
5TH RESPONDENT DATED 14.09.2023
Exhibit P2 TRUE PHOTOCOPY OF THE LETTER DATED
15.09.2023 ISSUED BY THE 5TH RESPONDENT TO
THE PETITIONER.
Exhibit P3 TRUE PHOTOCOPY OF THE LETTER DATED
15.09.2023 SUBMITTED BEFORE THE 3RD
RESPONDENT THROUGH THE 5TH RESPONDENT.
Exhibit P4 TRUE PHOTOCOPY OF THE LETTER DATED
15.09.2023 SENT BY THE EXCISE INSPECTOR TO
THE DEPUTY COMMISSIONER OF EXCISE,
KOTTAYAM.
Exhibit P5 TRUE PHOTOCOPY OF THE CERTIFICATE OF
PREFERENCE NO.PC-05/2023 DATED 10.09.2023
ISSUED BY THE 4TH RESPONDENT
Exhibit P6 TRUE PHOTOCOPY OF THE JUDGMENT DATED
12.09.2023 IN WP(C) NO.29716/2023 PASSED BY
THIS HON'BLE COURT.
Exhibit P7 TRUE PHOTOCOPY OF THE REQUEST SENT BY EMAIL
AND SUBMITTED DIRECTLY TO RESPONDENTS 1 TO
5 ON 19.09.2023
Exhibit P8 TRUE PHOTOCOPY OF THE JUDGMENT DATED
21.09.2023 IN WP(C) NO.30988/2023 PASSED BY
THIS HON'BLE COURT.
Exhibit P9 TRUE PHOTOCOPY OF THE ORDER
NO.E.D.O.K.T.M/505/2023-K5 DATED 23.09.2023
COMPOUNDING THE OFFENCE PASSED BY THE 3RD
RESPONDENT
Exhibit P10 TRUE PHOTOCOPY OF THE CHALAN RECEIPT DATED
23.09.2023 EVIDENCING THE PAYMENT OF
COMPOUNDING FEE
Exhibit P11 TRUE PHOTOCOPY OF THE REQUEST DATED
23.09.2023 SUBMITTED TO THE 4TH RESPONDENT
Exhibit P12 TRUE PHOTOCOPY OF THE ORDER DATED
20.09.2023 PASSED BY THE 4TH RESPONDENT,
C.I. OF EXCISE, CANCELING THE PREFERENCE
CERTIFICATE WITH RETROSPECTIVE EFFECT
Exhibit P13 TRUE PHOTOCOPY OF THE ORDER OF
CONFIRMATION, NO.EXC/KTM/23/27/031/1/135501
DATED 30.09.2023
WP(C) NO. 23638 OF 2024 8
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Exhibit P14 TRUE PHOTOCOPY OF THE LICENSE ISSUED TO
RESPONDENTS 6 AND 7 IN RESPECT OF TODDY
SHOP NO.3, DATED 01.10.2023
Exhibit P15 TRUE PHOTOCOPY OF THE PETITION FILED UNDER
RULE 12 OF THE ABKARI SHOPS DISPOSAL RULES
2002 BEFORE THE 8TH RESPONDENT DATED
10.10.2023
Exhibit P16 TRUE PHOTOCOPY OF THE GUIDELINES ISSUED IN
THE LIGHT OF AMENDMENT RULES FOR THE
ALLOTMENT OF THE SHOPS FOR THE YEAR 2023-26
Exhibit P17 TRUE PHOTOCOPY OF THE JUDGMENT DATED
02.11.2023 IN WP(C) NO.36233/2023
Exhibit P18 TRUE PHOTOCOPY OF THE ORDER
NO.G.O(RT)NO.533/2024/ TAXES DATED
15.06.2024 PASSED BY THE 8TH RESPONDENT
RESPONDENT EXHIBITS
EXHIBIT R1 (A) TRUE COPY OF THE ORDER NO.G1/100/2023/TAXES
DATED 25.10.2023
