Personal liquor licence cannot be used by a partnership firm for regulated trade; unauthorised participation is impermissible.

A liquor vending licence is personal to the named licensee and cannot be treated as a transferable authorisation for a partnership firm carrying on the business. Because liquor trade remains subject to the doctrine of res extra commercium, participation by persons other than the licensee through a partnership arrangement amounts to unauthorised engagement in a regulated activity. The Karnataka HC note states that the issue was answered in favour of the Revenue and the Tribunal's contrary view was set aside.

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Issues: Whether a liquor vending licence granted to an individual partner could be treated as usable by the partnership firm carrying on the liquor business.

Analysis: The licence to deal in liquor is personal to the licensee, and the business in liquor remains subject to the principle that it is res extra commercium. On that basis, a partnership arrangement cannot validate the carrying on of liquor trade by persons other than the licensee, since that would amount to unauthorised participation in a regulated and prohibited activity.

Conclusion: The question was answered in favour of the Revenue, and the Tribunal's contrary view was set aside.

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