M/S Swami Multi Marketing Pvt. ... vs The State Of Madhya Pradesh
2021 Latest Caselaw 448 MP

                                   1                                WP-5150-2021
        The High Court Of Madhya Pradesh
                   WP-5150-2021
  (M/S SWAMI MULTI MARKETING PVT. LTD. Vs THE STATE OF MADHYA PRADESH AND OTHERS)


Jabalpur, Dated : 03-03-2021
       Shri Rahul Diwakar, Advocate for the petitioner.

       Shri Pushpendra Yadav, Additional Advocate General for the
respondents/State.

With the consent of the parties the matter is heard finally and is being disposed of at motion stage.

The petitioner has approached this Court by filing this petition under Article 226 of the Constitution of India, assailing the order dated 30.01.2021 (Annexure P-9) passed by the Collector, District â€" Dhar, whereby a recovery notice has been issued to him (the petitioner) for payment of Rs.4,48,09,443/- (Rs. Four Crore Forty Eight Lakh Nine Thousand Four Hundred Forty Three only) and calling upon him (the petitioner) to submit his objection, if any, to such demand, within seven days, with the documents and proof which he possesses, in the office of District Excise Officer, Dhar. In case, he fails to submit any such objection within the aforesaid period of

seven days, action shall be taken to recover the aforesaid amount from the Bank Guarantee, Fixed Deposit and Postdated Cheques deposited by the petitioner in the said office.

Shri Rahul Diwakar, learned counsel for the petitioner submitted that the petitioner within seven days from the date of aforesaid notice dated 05.12.2020 has submitted a detailed representation dated 29.10.2020 (Annexure P-4) to the Collector, Excise Department, Dhar. He further submitted that the petitioner has also submitted an application to the District Committee through the Collector, Excise Department on 30.09.2020 (Annexure P-2) in compliance of the judgment of this Court dated 22.7.2020 vide which a bunch of petitions (W.P. No.7373/2020 and connected matters) were disposed of by this Court with the observations that if the petitioners find that they are at loss in operating the allotted liquor shops, they can opt to 2 WP-5150-2021 invoke Clause 49 of the Excise Policy to seek remission/waiver of Excise duty to the extent of loss and for that purpose file an application to the District Committee provided thereunder who shall send a fact finding report to the State Government whereupon decision on waiver of Excise duty shall be taken. It was further directed that it shall be open for the petitioners to

approach the competent Authority of the respondents invoking Clauses 49 and 54 of the Excise Policy 2020-21 and due to changed scenario and the facts and circumstances, the said Authority shall consider the claim of the petitioners sympathetically and take decision in accordance with law.

Learned counsel for the petitioner submitted that even though the petitioner filed such application (Annexure P-2) invoking Clause 49 on 30.09.2020, but, the District Committee has so far not sent its fact finding report to the State Government. The respondents ought not to, therefore, do away with the Bank Guarantee or otherwise recover the amount pursuant to demand notice dated 30.01.2021 from the petitioner.

Shri Pushpendra Yadav, learned Additional Advocate General has not disputed the fact about the application submitted by the petitioner to the District Committee through the District Collector, Excise Department on 30.09.2020 and has also not disputed that the said application has since not been decided.

This Court while deciding the bunch of petitions (W.P. No.7373/2020 and connected matters) has passed the following order:-

“128. In view of the stand of the State that if the petitioners find that they are at a loss in operating the allotted liquor shops, they can opt to invoke Clause 49 of the Excise Policy to seek remission/waiver of Excise duty to the extent of loss, file an application to the District committee provided thereunder who shall send a fact finding report to the State Government whereupon decision on waiver of Excise duty shall be taken, it shall be open for the petitioners to approach the competent Authority of the respondents invoking Clauses 49 and 54 of the Excise Policy 2020-21 and due to changed scenario and the fact and circumstances, the said Authority shall consider the claim of the petitioners sympathetically and take decision in accordance with law.â€​ 3 WP-5150-2021 Considering the aforesaid directions of the Court and also the liberty given to the petitioner in the demand notice dated 30.01.2021 to submit objections in the office of the District Excise, Seoni against recovery and till such time objection/application of the petitioner invoking Clause 49 of the Excise Policy is decided, we dispose of this writ petition with direction to the District Committee to forward the fact finding report to the State Government within a period of four weeks from the date of receipt of certified copy of this order either by the petitioner or through his representative in terms of the directions of this Court in the aforesaid judgment and thereafter the State Government shall take a decision on the representation made by the petitioner within a period of four weeks thereafter.

It is further directed that till the representation of the petitioner is decided, recovery certificate issued against the petitioner shall not be given effect to.

With the aforesaid directions, the petition stands disposed of.

                                            (MOHAMMAD RAFIQ)                             (VIJAY KUMAR SHUKLA)
                                             CHIEF JUSTICE                                          JUDGE


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Date: 2021.03.04 16:11:55 IST