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of <h1>L-10BB license renewal allowed after Financial Commissioner wrongly rejected application citing branch office operations</h1> <h3>M/s. Amrit Traders Versus State of Himachal Pradesh and Ors.</h3> M/s. Amrit Traders Versus State of Himachal Pradesh and Ors. - TMI Issues Involved:1. Validity of the non-renewal of the L-10BB license.2. Applicability of Excise Policy conditions versus statutory rules.3. Impact of GST Registration Certificate amendment on license renewal.Summary:1. Validity of Non-Renewal of L-10BB License:The petitioner challenged the order dated 16.04.2024 by the Financial Commissioner (Excise), Himachal Pradesh, which dismissed the appeal against the Collector (Excise)-cum-Joint Commissioner (ST&E), Central Zone, Mandi's order dated 30.03.2024. The petitioner, a license holder in form L-10BB since 2021-22, had his license initially issued and subsequently renewed for 2022-23 and 2023-24. A clarification dated 02.08.2021 allowed licenses if the gross annual turnover was more than Rs. 2 crore, but this was withdrawn on 20.12.2023, enforcing that licenses be granted strictly as per condition No. 10.8 of the Excise Policy for 2023-24. The petitioner's license was made operative only from the principal place of business, not branches. Despite applying for an amendment of the GST Registration Certificate to shift the business to the principal place of business, the renewal was denied.2. Applicability of Excise Policy Conditions versus Statutory Rules:The petitioner argued that the Excise Policy's condition No. 10.8(vi) for 2023-24 and condition No. 9.8 for 2024-25, which stated that L-10BB licenses shall not function from branches, did not preclude renewal after shifting to the principal place of business. The petitioner also highlighted that Rule 19-A of The Himachal Pradesh Liquor License Rules, 1986, does not mention the requirement of a minimum distance between L-10BB and L-2 vend, which was a condition in the Excise Policy. The court observed that conditions in the Excise Policy cannot override statutory rules unless amended.3. Impact of GST Registration Certificate Amendment on License Renewal:The petitioner's application for amending the GST Registration Certificate to change the business location from branch to principal place was approved on 09.04.2024, effective from 14.03.2024. The court noted that the amendment should have been considered favorably for the renewal of the license. The Financial Commissioner should have taken into account the subsequent development of the GST Registration Certificate amendment while deciding the appeal.Conclusion:The court found merit in the petition and quashed the impugned order dated 16.04.2024 by the Financial Commissioner (Excise). It directed the respondents to renew the L-10BB license, acknowledging the change of business premises to the principal place as per the amended GST Registration Certificate. The needful was to be done expeditiously within ten days to prevent financial loss to the petitioner and the State Exchequer. The petition and pending applications were disposed of accordingly.
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