Reduced licence fee denied where renewal delay was caused by the applicant's own non-compliance with mandatory conditions.

A licensee who filed a timely renewal application for a Form 2B excise licence could not claim the reduced-fee benefit under Rule 10(3)(b)(ii) because renewal was delayed by his own failure to produce the mandatory trade licence. Rule 6(1)(v) made production of the trade licence a condition for grant, and Rule 9-A governed renewal of Form 2B licences. The reduced annual fee applies only where the authorities fail to renew on time despite the applicant's compliance. As the delay here was attributable to the applicant's non-compliance, payment of the full annual licence fee was correctly insisted upon.

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Issues: Whether the licensee, whose application for renewal of a Form 2B licence was delayed because he did not submit the required trade licence in time, was entitled to pay only 3/4th of the annual licence fee under Rule 10(3)(b)(ii) of the Andhra Pradesh Excise (Grant of Licence of Selling by Bar and Conditions of Licence) Rules, 2005.

Analysis: The renewal application was filed within time, but renewal was not completed until the trade licence was produced. Rule 6(1)(v) required production of the trade licence as a condition for grant of a Form 2B licence, and Rule 9-A, inserted in 2007, governed renewal of such licences. The reduced-fee principle in Rule 10(3)(b)(ii) applies where the authorities are at fault in not renewing the licence in time despite compliance by the applicant. Where the delay is caused by the applicant's own failure to comply with a mandatory condition, the applicant cannot rely on the delayed renewal date to claim a reduced licence fee.

Conclusion: The licensee was not entitled to pay only 3/4th of the annual licence fee; the insistence on payment of the full annual fee was upheld.

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