Full Judgment Text
Neutral Citation Number 2022/DHC/005540
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IN THE HIGH COURT OF DELHI AT NEW DELHI
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Judgment delivered on: 13.12.2022
+ W.P.(C) 12511/2022 and CM APPL.37801/2022, 52325/2022, &
52659/2022
BRINDCO SALES PVT. LTD. ..... Petitioner
versus
GOVT. OF NCT OF DELHI & ORS. ..... Respondents
Advocates who appeared in this case:
For the Petitioner : Ms. Simran Brar, Mr. Vandanta Varma and
Ms. Kiran Devrani, Advocates
For the Respondents : Mr. Santosh Kumar Tripathi, Standing
Counsel (Civil), GNCTD with Mr. Arun
Panwar and Mr. Tapesh Raghav, Advocates.
CORAM:
HON'BLE MR. JUSTICE TUSHAR RAO GEDELA
J U D G M E N T
TUSHAR RAO GEDELA, J. (ORAL)
[ The proceeding has been conducted through Hybrid mode ]
1. By way of present petition, the petitioner challenges rejection of the
revalidation of the import permit no. IP-230522016308 and import permit
no. IP-230522016311 both dated 23.05.2022 issued by the respondents for
import of liquor stock vide office order dated 03.09.2022 read with Delhi
Excise Rules, 2010. The petitioner seeks revalidation as also to make an
inventory of the goods which were permitted to be offloaded into the bonded
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By:VINOD KUMAR
Signing Date:14.12.2022
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Neutral Citation Number 2022/DHC/005540
warehouse for onward sale as permitted under Delhi Excise Act, 2009 read
with the rules made thereunder.
2. The facts germane to the dispute are very narrow, and therefore, the
Court is refraining from going into the detailed facts as narrated in the writ
petition.
3. According to the petitioner, the original IP i.e. Import Permit
Nos.IPN230522016308 and IPN230522016311 were issued on 23.05.2022
for a period of 9 days expiring on 31.05.2022. Subsequently, on 26.05.2022,
the aforesaid IPs were extended automatically with effect from 23.05.2022
through till 04.06.2022. This extension makes it total for a period of 13 days.
Thereafter, on the expiry of the aforesaid IPs, the petitioner made a request
for revalidation (in the submission of the petitioner first revalidation) to be
granted from 19.07.2022 to 31.07.2022. However, the portal automatically
renewed for only 9 days instead of 13 days which is with effect from
19.07.2022 through till 27.02.2022 on payment of a composite fee at highest
which is 25%.
4. Ms. Brar, learned counsel appearing for the petitioner, submits that
Rule 18 of the Delhi Excise Rules, 2010 governs the revalidation of the
import permit and submits that the provisions of the Rule 18 do not limit the
number of times revalidation can be sought or be granted by the Deputy
Commissioner. She also submits that even as per Office Order dated
03.09.2019 issued by the Government of NCT of Delhi, revalidation can be
sought twice on the payment of composite fee.
5. Learned counsel for the petitioner submits that subsequent to the
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Signing Date:14.12.2022
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expiry of the original permit, the revalidation which was granted on
26.05.2022, was automatically revalidated from 31.05.2022 through till
04.06.2022. She lays emphasis on the fact that this automatic revalidation
was done by the system for a period of 13 days. She submits that this cannot
be considered as revalidation since it fell during the period of validity of the
original Import Permit.
6. Learned counsel for the petitioner further submits that as per the
petitioner, first revalidation was sought on 19.07.2022 whereby the
petitioner had paid the requisite composition fee at the highest rate of 25%
in accordance with the office order dated 03.09.2022. However, revalidation
was granted only for 9 days from 19.07.2022 through till 27.07.2022 which
is a period of 9 days instead of 13 days.
7. Learned counsel submits that to rectify the situation, the petitioner
sought revalidation vide the application dated 30-31.07.2022 and
simultaneously attempted to deposit the composition fee. However, the
application for revalidation was rejected and the portal was closed disabling
the petitioner from depositing the composition fee.
8. It is this rejection of validation sought vide the application dated 30-
31.07.2022, which is the subject matter of the present petition.
9. Per Contra, learned counsel Mr. Panwar appearing for the respondents
draws attention of the Court to the counter affidavit as filed by the
respondents in answer to the present writ petition. On page 3 of the counter
affidavit, the relevant portion of the Cabinet decision held on 30.07.2019 has
been extracted.
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Signing Date:14.12.2022
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10. He places reliance on the aforesaid decision of the Cabinet where
import permit revalidation was decided not to be allowed for more than two
times. Learned counsel further drew attention of the Court to page 4 of the
counter affidavit where the table in respect of the Composition Fee for
extending the validation of the import permit has been brought out to submit
that the decision to limit request for revalidation to two times has been acted
upon.
11. On that basis, Mr. Panwar submits that the petitioner having availed
of such request two times previously could not have sought a third request
for revalidation submitted on 30/31.07.2022. Learned counsel refers to Sub
Section (a) of Section 4 of Delhi Excise Act, 2009 to submit that the
Commissioner under the Act is permitted to regulate, control, monitor,
manufacture, possession import, export, transport and sale and consumption
of liquor and other intoxicants suggesting that the Cabinet decision and the
subsequent office order is in conjunction with the powers exercised by the
Commissioner under Section 4 of Delhi Excise Act, 2009.
12. With respect to Rule 18 of the Delhi Excise Rules, 2010, Mr. Panwar
submits that though the provision prescribed no limitation to the number of
times a person can apply for revalidation, however, submits that Section 4
(a) of the Delhi Excise Act read with the Office Order dated 03.09.2019 has
limited the scope of Rule 18 to the number of times revalidation can be
sought in accordance with the Cabinet Decision. As such, learned counsel
for the respondents submits that there is no illegality committed by the
respondents in refusing the revalidation which in his submission is the third
attempt and not permissible.
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By:VINOD KUMAR
Signing Date:14.12.2022
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Neutral Citation Number 2022/DHC/005540
13. This Court has considered the rival contentions and also taken into
account the provisions of the Delhi Excise Act as well as Rule 18 of the
Delhi Excise Rules, 2010. The facts as submitted are not disputed by either
of the parties. What is to be considered by this Court is that whether
revalidation sought by the petitioner on 30/31.07.2022 is within the
permissible number of attempts that the petitioner could have made under
Rule 18 read with Office Order dated 03.09.2019.
14. It is not in dispute that original import permit was granted for a period
of 9 days instead of 13 days as sought by the petitioner on 23.05.2022. This
was done so, since the liquor policy was expiring on 31.05.2022 and
therefore, could not have been extended beyond 31.05.2022. However, it is
also not disputed that the liquor policy in force on that day was extended for
a further period of two months i.e. till 31.07.2022.
15. Accordingly, the petitioner also renewed its liquor licence by paying
the requisite fee as per the rules till 31.07.2022, which is not disputed by the
learned counsel appearing for the respondents. It appears that the import
permit was extended automatically, which is not disputed, w.e.f. 31.05.2022
to 04.06.2022 on 26.05.2022, possibly in accordance with the decision to
extend the liquor policy upto 31.07.2022. It is apparent that the government
extended the import permit automatically via the portal on its own volition.
It is further undisputed that the said automatic revalidation was granted for a
period of 13 days.
16. It is undisputed that the petitioner had also sought revalidation on
19.07.2022, after depositing the composition fee which was granted from
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By:VINOD KUMAR
Signing Date:14.12.2022
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19.07.2022 through till 27.07.2022. The said revalidation was given only for
9 days instead of 13 days as was sought by the petitioner. Since the period of
4 days was not granted to the petitioner, the trouble or grievances of not
being able to offload its goods beyond 27.07.2022 was sought to be
corrected by attempting to make another request on 30/31.07.2022.
17. This application for revalidation was rejected by the respondent on the
ground that it was violative of the Office Order dated 03.09.2019. The
revalidation done by the portal on 26.05.2022 granting revalidation of
import permit from 31.05.2022 through till 04.06.2022 was done
automatically by the portal itself given the fact that the liquor policy was
extended uptil 31.07.2022. This automatic extension obviously could not
have been considered as an application seeking revalidation of import permit
on behalf of the petitioner and therefore could not have been counted
towards the number of requests granted under the Office Order. Yet another
reason to reach this conclusion is the fact that for this period, the respondent
did not charge any composition fee from the petitioner.
18. Having regard to the fact that this Court has reached the conclusion
that revalidation granted automatically on 26.05.2022 is not attributable to
the petitioner, the revalidation as sought on 30/31.07.2022 would
automatically fall within the permissible number of requests as per Office
Order dated 03.09.2019 and considering from that point of view, the
respondents could not have denied revalidation of the Import Permits.
19. No doubt, the petitioner has not challenged the validity or otherwise
of the Office Order dated 03.09.2019, however, having regard to the
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Signing Date:14.12.2022
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aforesaid reasoning, the requirement to do so does not arise in the present
case. This is for the reason that whether this Court considers revalidation
sought on 30/31.07.2022 as the first or the second request either way it
would fall within the purview of office order dated 03.09.2019.
20. Looked at from any which way, the rejection of request for renewal is
arbitrary and not sustainable in law. In that view of the matter, the rejection
is quashed.
21. In view of the above, the respondents are directed to revalidate the
import permit no. IP-230522016308 and import permit no.IP-230522016311
both dated 23.05.2022 for a maximum permissible period subject to
payment of the highest of the composition fee in accordance with office
order dated 03.09.2019. The respondents are directed to make an inventory
of the two consignments offloaded into the bonded warehouse and to treat
them as left over stock of the licensing year 2021 – 2022 and permit onward
sale in accordance with the Delhi Excise Act, 2009 and Rules, 2010 made
thereunder.
22. The aforesaid exercise may be carried out in accordance with
judgment of this Court dated 07.12.2022 in Writ Petition No.16485/2022
titled as Anheuser Busch Inbev India Ltd vs. Govt. Of NCT of Delhi &
Ors.
23. In view of the above, this writ petition is disposed of with no order as
to costs. The aforesaid exercise may be carried out within a period of four
days from the date of receipt of the order.
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Digitally Signed
By:VINOD KUMAR
Signing Date:14.12.2022
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Neutral Citation Number 2022/DHC/005540
24. All pending applications also stand disposed of.
25. Copy of the order be given dasti under signature of the Court Master.
TUSHAR RAO GEDELA, J.
DECEMBER 13, 2022
kct/pg
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W.P.(C) 12511/2022 Page 8 of 8
Digitally Signed
By:VINOD KUMAR
Signing Date:14.12.2022
18:27:16