The Hindu : Andhra Pradesh News : Excise policy struck down by High Court

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Wednesday, Mar 23, 2005

Andhra Pradesh

Andhra Pradesh

Excise policy struck down by High Court

By Our Legal Correspondent

HYDERABAD, MARCH 22. A Division Bench of the Andhra Pradesh High Court today dismissed writ appeals filed by the State Government by which its new excise policy stands annulled.

Comprising Justice B. Sudershan Reddy and Justice C.V. Ramulu, the Bench literally upheld the judgment of the single judge, who had set aside major portions of the new excise policy while passing severe strictures against the policies of the Government. The single judge was allowing a batch of writ petitions filed by the existing retail wine traders who complained that the new policy prohibited renewal of licences. The Government filed the present batch of writ appeals against the judgment of the single judge.

The Chief Minister, Y.S. Rajasekhara Reddy, who held a high-level meeting with excise officials to take stock of the situation in the wake of the setback to the Government's policy, issued directions not to renew the licences of the wine dealers for the next three months and return the bank drafts submitted by the businessmen seeking licences for shops under the new excise policy. Meanwhile, the Government decided to put on hold any move to challenge it.

Speaking through Justice Sudershan Reddy, the Bench dealt in detail the objective sought to be achieved by the new policy. The Government had claimed that the new policy would streamline the sale and consumption to ensure that good quality liquor will be made available at affordable prices. The Bench said: "There is no rational connection with the decision not to renew the licences of the existing licensees."

Scrutiny of policy

The Bench observed that in the normal course, the policy decision of the Government was not interfered with but reminded that "if the policy made with respect to liquor traffic is not to protect the community or to promote general well-being, instead under the guise of regulation, there is discrimination and found unreasonable without any discernible purpose, the constitutional courts cannot abdicate their duty to scrutinise the policy on touchstone of Article 14 of the Constitution of India."

It gave liberty to the Government to formulate excise policy afresh in accordance with the law. It did not agree with the complaint of the Government that the single judge did not appreciate the intention to break the cartel.

The Bench said that in the absence of the any possibility to control production and sale, the ground that the excise policy intended to effectively eliminate cartels in liquor trade was a non-existing one.

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