Prospective excise fee enhancement cannot burden existing licence holders during the current excise year absent clear retrospective language.

Enhanced excise licence fee under the Andhra Pradesh excise regime could not be levied on existing licence holders during the subsisting excise year because the licence fee was annual and the licensee's entitlement for that year had already crystallised on payment or accrual in instalments. The Government Order stated an effective date of 01-04-1990, but it contained no clear retrospective language authorising mid-year enhancement for licences already operating in the then current excise year. In fiscal matters, the charging provision and operative schedule must be strictly construed, so the enhancement operated only prospectively from the next excise year beginning 01-10-1990.

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Issues: Whether the enhanced excise licence fee introduced by G.O.Ms. No. 160 dated 03-03-1990 could be collected from existing licence holders during the then current excise year or would operate only from the next excise year beginning 01-10-1990.

Analysis: The licensing scheme under the Andhra Pradesh Excise Act, 1968 and the Andhra Pradesh (Foreign and Indian Liquor) Rules, 1970 treated the licence fee as an annual fee referable to the excise year running from 1st October to 30th September. Once the annual fee had been fixed and paid, or had become payable in instalments, the licensee's entitlement to operate for that excise year stood crystallized. The amendment made by the Government Order expressly stated that it would come into force from 01-04-1990, but there was no clear language making it retrospectively applicable to the existing excise year or authorising mid-year enhancement for existing licences. In fiscal matters, the charging provision and the operative schedule must be strictly construed, and no unexpressed intendment can be read into the amendment.

Conclusion: The enhanced licence fee was not collectible for the period prior to 01-10-1990 and became operative only from the next excise year; the issue is decided in favour of the assessee.

Ratio Decidendi: In the absence of clear retrospective language, an enhancement of annual excise licence fee can operate only prospectively from the next excise year and cannot burden existing licence holders during the subsisting excise year.

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