Court Remits Licensing Matter, Allows Renewal Claim under Section 34(2) Act

The court set aside the orders dated 05.02.2020 and 30.10.2019, remitting the matter to the licensing authority pending the decision on the Gehrukheda license. If no case is established for cancellation under Section 34(2) of the Act, the petitioner's renewal claim for the Excise Year 2021-22 may be considered, with a potential refund if renewal is not sought. The court partially allowed the writ petition, emphasizing the interdependence of the Majhenpurwa and Gehrukheda licenses in the proceedings.

---

---

Issues Involved:
1. Quashing of the order dated 05.02.2020 by the Additional Excise Commissioner.
2. Quashing of the order dated 30.10.2019 by the Collector/Licensing Authority cancelling the Majhenpurwa license.
3. Jurisdictional defect due to lack of prior notice before cancelling the Majhenpurwa license.
4. Interpretation and application of Section 34(2) of the United Provinces Excise Act, 1910.
5. The relationship between the cancellation of Gehrukheda license and Majhenpurwa license.
6. The maintainability of the writ petition.

Detailed Analysis:

1. Quashing of the Order Dated 05.02.2020 by the Additional Excise Commissioner:
The petitioner sought to quash the order dated 05.02.2020 passed by the Additional Excise Commissioner, which dismissed the Excise Appeal No. 95 of 2019. This appeal was against the cancellation of the Majhenpurwa license. The court analyzed whether the appeal authority had the jurisdiction to entertain the appeal and whether the proceedings were conducted fairly.

2. Quashing of the Order Dated 30.10.2019 by the Collector/Licensing Authority Cancelling the Majhenpurwa License:
The petitioner also challenged the order dated 30.10.2019, which cancelled the Majhenpurwa license. The court examined the procedural correctness of the cancellation, noting that the initial cancellation on 28.05.2019 lacked prior notice, which was a jurisdictional defect. However, this defect was addressed when a fresh notice was issued on 29.08.2019, leading to the cancellation on 30.10.2019.

3. Jurisdictional Defect Due to Lack of Prior Notice Before Cancelling the Majhenpurwa License:
The court acknowledged that the initial cancellation of the Majhenpurwa license on 28.05.2019 was without prior notice, which was a jurisdictional defect. However, this was remedied when the appeal authority allowed the issuance of a fresh notice, which was done on 29.08.2019. The subsequent proceedings were thus held to be within jurisdiction.

4. Interpretation and Application of Section 34(2) of the United Provinces Excise Act, 1910:
The court delved into the interpretation of Section 34(2) of the Act, which allows for the cancellation of any other license of a licensee if one license is cancelled under certain conditions. The court clarified that while Section 34(1) requires specific violations to cancel a license, Section 34(2) does not require independent violations for the cancellation of another license. The discretionary power under Section 34(2) is to be exercised with caution and based on the proven facts of the initial cancellation.

5. Relationship Between the Cancellation of Gehrukheda License and Majhenpurwa License:
The court noted that the fate of the Majhenpurwa license is partly dependent on the outcome of the proceedings related to the Gehrukheda license. Since the proceedings for the Gehrukheda license were remanded for fresh consideration, the court held that the cancellation of the Majhenpurwa license should also be reconsidered based on the final decision regarding the Gehrukheda license.

6. Maintainability of the Writ Petition:
The court rejected the preliminary objection regarding the maintainability of the writ petition, stating that a question of law exists regarding the interpretation of Section 34(2) of the Act. The court found it appropriate to address the issues raised in the petition rather than directing the petitioner to approach the revising authority.

Conclusion:
The court set aside the orders dated 05.02.2020 and 30.10.2019 and remitted the matter to the licensing authority. The remanded proceedings may be recommenced only after the decision of the Appeal Authority regarding the Gehrukheda license. If no case is made out for the cancellation of the Majhenpurwa license under Section 34(2) of the Act, the petitioner's claim for renewal of the license for the Excise Year 2021-22 may be considered. The court also provided for the possibility of a proportional refund if the petitioner does not seek renewal. The writ petition was partly allowed.

---