Division Bench Sets Aside Refund of Licence Fee for Bar Licence Suspension Period
In a significant ruling, the Andhra Pradesh High Court's Division Bench, comprising Chief Justice Lisa Gill and Justice Sri Challa Gunaranjan, overturned a Single Judge's decision that had ordered the refund of a proportionate licence fee to M. Ramasubba Reddy. The refund was initially directed for the period during which Reddy's bar licence was suspended due to non-compliance with statutory requirements.
The case revolved around the renewal of a bar licence under the A.P. Excise (Grant of Licence of Selling by Bar and Conditions of Licence) Rules, 2005. The rules necessitated the submission of a No Objection Certificate (NOC) from the local authority, which Reddy failed to produce within the stipulated time. Although an amendment later replaced the NOC requirement with a trade licence, the Division Bench ruled that this did not entitle Reddy to a refund for the suspension period, as the suspension was a result of his own non-compliance.
The initial order by the Single Judge was challenged by the Government of Andhra Pradesh, leading to this appeal. The Division Bench emphasized that the suspension was due to Reddy's failure to adhere to Rule 6(V) of the 2005 Rules, thus holding him accountable for the inability to operate his business during the suspension.
Bottom Line :
Excise licence - Renewal of bar licence subject to production of NOC from local authority under Rules of 2005 - Licensee failed to produce NOC within stipulated time and even sought extension - Licence suspended for contravention of Rule 6(V) - Subsequent amendment substituting NOC with trade licence and later revocation of suspension does not entitle licensee to proportionate refund of licence fee for period of suspension - Order directing refund set aside.
Statutory provision(s): A.P. Excise (Grant of Licence of Selling by Bar and Conditions of Licence) Rules, 2005, Rule 6(V), Rule 9A(2); G.O.Ms.No.122 dated 06.02.2009
