BIHAR EXCISE (AMENDMENT AND VALIDATING) ACT, 1998

Preamble - BIHAR EXCISE (AMENDMENT AND VALIDATING ACT, 1998

 

THE BIHAR EXCISE (AMENDMENT AND VALIDATING) ACT, 1998

[Act No. 06 of 1998]

PREAMBLE

An Act to Amend the Bihar Excuse Act, 1915.

Whereas, the Cabinet had approved the proposal of the Excise & Prohibition Department for imposing license fee on every licensee of the zone at the rate of Rupee 1 per L.P. litre on the M.G.Q. of the zone and the tender notice was to be issued accordingly;

AND, Whereas, the tender notice was issued for the period 1st July 1995 to 31st March 1999 and the period of supply of country Liquor during the first year being only 9 months the Excise & Prohibition Department intended to grant a proportionate reduction of license fee for the shorter period and with this intention had used the expression "Samanupatik" in the tender notice and license;

And, Whereas, at the time of negotiations of rates and its determination all the tenders were fully aware of the number of tenderers on each zone and the rate was fixed and agreed upon after including Rs. 2 per L.P. litre for covering the license fee burden which was intended to be passed on to the retailer/consumer;

And, Whereas, the tenderers had accepted the rate fixed in writing and 13 out of 15 tenderers paid the license fee at the rate of Rupee 1 per L.P. litre on M.G.Q. for the years 1995-96, 1996-97 and 1997-98 and did not challenge the imposition of the said license fee;

And, Whereas, only two tenderers filed writ petitions in the Patna High Court, after depositing license fee at the above-rate for the period 1995-96 and all the tenderers supplied

country liquor at the fixed agreed rate and passed on the license fee burden to the retailer/consumer;

And, Whereas, the Hon'ble Supreme Court and the High Court held that the expression "samanupatik", in the context, meant that the total license fee for the zone was to be paid by the licensees of the zone in equal proportion;

And, Whereas, the Hon'ble Supreme Court had held that the State will not be able to charge from each contractor in a zone the full license fee unless it is to provided clearly in the tender conditions and the conditions of license;

And, Whereas, it has become necessary to validate and impose license fee in accordance with the intention of the policy approved by the Cabinet on 13th June 1995, by rectifying the unintended error in the tender notice dated 3rd June 1995 and the licenses issued in pursuance thereof, and also to validate the collection of license fee already made from each licensee;

Be it enacted by the Legislature of the State of Bihar in the forty-ninth year of the Republic of India as follows :--

Section 1 - Short Title, Extent and Commencement

(1)     This Act may be called the Bihar Excise (Amendment and Validating Act, 1998.

(2)     It shall extend to the whole of Bihar.

(3)         It shall be deemed to come into force with effect from 1st June, 1995.

Section 2 - Insertion of new Sections after Section 22 "C" in the Bihar Excise Act, 1915 (Act II of 1915) (hereinafter referred to as the said Act).--

The following new sections shall be inserted namely :--

"22D-Grant of exclusive/special privilege for bottling/Sacheting and wholesale supply of country liquor.--

(1)     The State Government may grant to any person/persons on such conditions and for such terms and conditions and for such period as it may think fit, the exclusive/special privilege for supplying country liquor, on wholesale basis, after sacheting bottling it. There may be more than one grantee in a zone of supply.

(2)     No Grantee of any privilege under sub-section (1) shall exercise the same unless he has received a license in that behalf from the Board of Revenue/Excise Commissioner/ Collector.

(3)     A license fee shall be paid in advance in one lump sum by each licensee of the zone determined by the Member, Board of Revenue/Excise Commissioner at the rate of Rupee 1 per L.P. litre calculated on the basis of the annual M.G.Q. Additional license fee shall be paid by each licensee of the zone if the total wholesale supply of the country liquor in the zone exceeds the annual M.G.Q. which would also be calculated at the rate of Rupee 1 per L.P. litre on the excess quantity.

(4)     The condition regarding payment of advance license fee and additional license fee as per sub-section (3) would be deemed to be included in the tender notice dated 3rd June 1995 issued by the Excise and Prohibition Department for wholesale supply of country liquor during the period 1st July 1995 to 31st March 1999 and would also be deemed to be included in all the licenses issued in pursuarce thereof and any expression, term or condition to the contrary contained in the tender notice and licenses would be deemed to be deleted and substituted accordingly.

22E. Validating of License Fee

(1)     Notwithstanding any thing contrary contained in a judgment/decree or order of any court, Tribunal or Authority, advance license fee in the lump sum on each license for wholesale supply of country liquor after sacheting/bottling granted pursuant to tender notice dated 3rd June 1995 issued by the Bihar Excise and Prohibition Department shall be deemed to have been imposed on every license at the rate of Rupee 1 per L.P. litre calculated on the annual M.G.Q. and an additional license fee at the same rate on excess supply shall also be deemed to have been imposed on every license of the zone where the total wholesale supply in the zone exceeds the annual M.G.Q.

(2)     The amount of license fee collected from the various licensees at the above rate shall be deemed to have been validly collected, irrespective of any term or condition contained in the tender notice dated 3rd June 1996 and the license issued in pursuance thereof and the license fee so collected shall not be refundable and no Court, Tribunal or Authority shall order for refund of such license fee :

Provided that if any licensee has not paid license fee as specified in sub-section (3) of section 22-D under the order of any Court, Tribunal or Authority the State Government shall realize the same as arrears of revenue.

22F. Overriding effect of the Ordinance.-

"Notwithstanding anything to the contrary contained in any judgment, decree or order passed by any court and in any law for the time being enforce, the provision of this Ordinance shall prevail and have effect".

Section 3 - Repeal and Savings

(1)     The Bihar Excise (Amending and Validating) Ordnance, 1998 (Bihar Ordinance no. 6, 1998) is, hereby, repealed.

(2)         Notwithstanding such repeal, any thing done or any action taken in exercise of any power conferred by, or under the said Ordinance shall be deemed to have been done or taken in exercise of the powers conferred by or under this Act as if this Act were in force on the day on which such thing was done or action taken.