Rule 279A does not require payment of the conversion fee within the 90-day application window.

Petitioner No. 3 was granted an IMFL “ON” licence in 2011. After entering into a partnership with Petitioner No. 2, the licence was transferred to Petitioner No. 1, the partnership firm, on 5 September 2023.

On 8 August 2022, while Petitioner No. 3 held the licence, the petitioners applied to convert it to an IMFL “OFF” licence; the application fee of Rs. 25,000 had been deposited on 3 August 2022.

The petitioners sought relief for the Excise Authorities’ failure to process the application. The Department contended that the conversion fee of Rs. 1,25,000 was paid on 30 September 2022, after the 90-day application period had expired.

Whether an application for conversion of an IMFL “ON” licence to an IMFL “OFF” licence must be accompanied by the conversion fee, in addition to the application fee, within the 90-day period prescribed by Rule 279A.

Whether the petitioners’ application, submitted within the 90-day period with the prescribed application fee, must be considered despite the later payment of the conversion fee.

Rule 279A of the Assam Excise Rules, 2016, inserted by the Assam Excise (Amendment) Rules, 2022, permits eligible existing rural IMFL “ON” licensees whose licences were issued before 1 March 2022 to apply for conversion to an IMFL “OFF” licence on payment of an application fee of Rs. 25,000.

The application must be submitted within 90 days of publication of the amending rules in the Official Gazette. Conversion may be allowed by the District Collector with the State Government’s prior sanction, on payment of a conversion fee of Rs. 1,25,000.

The Assam Excise Act, 2000 and the Rules framed under it govern consideration of the application. No precedent was relied upon.

The Court read Rule 279A as requiring the application, accompanied by the Rs. 25,000 application fee, to be filed within the 90-day period. It found that the Rule did not require the Rs. 1,25,000 conversion fee to be paid at the time of application or within that period; payment of that fee followed the authorities’ consideration and direction.

Since the application was filed on 8 August 2022, with the application fee paid on 3 August 2022, and the relevant period ran until 5 September 2022, the later payment of the conversion fee did not justify rejecting the application.

It directed the respondent authorities, particularly Respondents 2, 3 and 4, to take effective steps to consider the application in accordance with the Assam Excise Act, 2000 and the Rules, within 90 days of service of a certified copy of the judgment on Respondent No. 4. The writ petition was disposed of accordingly.