2017 (1) TMI 267 - HC - Indian Laws

Petitioner must pay full license fee for renewal, timing not a factor. Compliance is key for renewal.

The Court held that the petitioner was liable to pay the full annual license fee for renewal, rejecting the argument for a reduced fee due to the timing ... Renewal of trade licence from second quarter - licence for running a Bar-cum-Restaurant - Held that: - the delay in granting renewal was only because the respondent-writ petitioner had failed to submit his trade licence along with his application seeking renewal; and his licence was renewed, the moment the trade licence was submitted by him. The action of the appellants, in insisting that the entire annual licence fee be paid by the petitioner, cannot therefore be faulted - Appeal allowed. Issues:1. Interpretation of Rule 10(3)(b)(ii) of Andhra Pradesh Excise (Grant of Licence of Selling by Bar and Conditions of Licence) Rules, 2005.2. Compliance with Rule 6(1)(v) and Rule 9-A for renewal of Form-2B licence.3. Application of previous judgments in similar cases.4. Discretion of authorities in renewal process and fee payment.Analysis:1. Interpretation of Rule 10(3)(b)(ii) of 2005 Rules:The key issue in this case revolved around the interpretation of Rule 10(3)(b)(ii) of the 2005 Rules concerning the payment of the annual license fee for renewal. The Single Judge held that the petitioner was liable to pay only 3/4th of the annual license fee as the renewal occurred in the second quarter of the excise year. The Court emphasized that the rule applied to both fresh and renewed licenses, rejecting the argument that it was only for fresh licenses.2. Compliance with Rule 6(1)(v) and Rule 9-A for renewal:The respondent failed to enclose a copy of the trade license with the renewal application, which was a requirement under Rule 6(1)(v). The Court highlighted that the delay in renewal until 09.10.2012 was due to the respondent's non-compliance with this statutory condition. Rule 9-A mandates timely renewal applications and allows licensees to continue operations until renewal is refused, provided all conditions are met. The Court found that the respondent's failure to submit the trade license on time led to the delay in renewal.3. Application of previous judgments:The Court referred to previous judgments, such as M. Harikiran and Sri Venkata Sai Restaurant and Bar cases, to draw parallels in cases of delayed license grants. However, it noted that these judgments were rendered before the insertion of Rule 9-A in 2007, which specifically addressed renewal processes. The Court distinguished the present case from previous ones, emphasizing the importance of compliance with renewal requirements.4. Discretion of authorities in renewal process and fee payment:The Court underscored that the authorities were not at fault for insisting on the full annual license fee payment. It highlighted that the respondent's delay in submitting the trade license was the primary reason for the delayed renewal. Therefore, the Court set aside the earlier judgment and allowed the appeal, emphasizing that the authorities were justified in requiring full fee payment due to the respondent's non-compliance.In conclusion, the Court's decision focused on upholding the importance of compliance with statutory requirements for license renewal and fee payment, emphasizing that delays caused by the licensee's actions cannot be used to claim reduced fees.