TaxTMI 
TaxTMI 
2017 (6) TMI 1269
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....d demand was raised by the respondent - Excise Department under the provisions of Sub-rule (2) of Rule 14 of the Karnataka Excise (Sale of Indian & Foreign liquor) Rules, 1968. 3. Referring to the two previous orders passed by the co-ordinate bench of this court vide Annexures G & H placed on record, the learned counsel for the petitioner submits that Annexure-D dated 28.5.2016 and Annexure-E dated 16.8.2016, are the demand notices which are straight away issued by the Deputy Commissioner, Bengaluru, raising demand of Rs. 7,73,100/- without giving any opportunity of hearing the petitioner. Hence, the petitioner prays that the said demand notices deserve to be quashed by this court. 4. He further submitted that Rule 14(2) of the above ....
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....7.3.2017. Even much earlier to that, the said order was passed by the Deputy Commissioner i.e., on 30.06.2016, but no challenge to the said order of the Deputy Commissioner, was made in the present Writ Petition. 7. Having heard the learned counsels, this court is of the opinion that the present Writ Petition has no force and is liable to be dismissed. The reasons are as follows. 8. Before deletion of Sub-rule (2) of Rule 14 of the Karnataka Excise (Sale of Indian & Foreign liquor) Rules, 1968, although the second proviso to the said Rule provided for an opportunity of hearing to the licencee, if he fails to lift the minimum quantity of liquor so fixed per month, which quantity was specified in the said rule itself, before the penalty....
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....nnexure-R1 dated 28.6.2016. 11. It is also seen from the perusal of Rule 14 which is quoted herein below in extenso that it is not actually a penalty requiring any mens rea or guilty animus on the part of the licencee. It is rather a fiscal liability or the price for deficit in full assured supply to be taken as fixed on the licencee to compensate the respondent - Department or the authorized Distillery company, for the short lifting of the liquor. The said Rule was introduced in the statute book to regulate the supply of only authorized and properly manufactured liquor from the authorized licencees only to avoid the smuggling of illegal liquor into the market through illegal outlets or source. To check such a menace, if a liability is f....
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....tor licensee (CL-11) or a distributor licensee for vend of foreign liquor (CL-11A)], the minimum quantity of liquor (excluding fenny, wine and beer) fixed per month for the shop based on the license fee prescribed or each type of license, overheads, other expenses incurred, location of the shop, area of operation, sale of liquor in the previous years, and similar factors to ensure that illicit liquor is not obtained by the licensees and sold in the shop, to ensure that no attempt is made to undersell the liquor and thereby wholesome liquor obtained only from authorized sources is sold to the consumers. In case the licensee fail to lift the minimum quantity of liquor so fixed per month, he shall be liable to pay a penalty at the rate of Rs. ....
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....ty Commissioner on 30.06.2016. 14. Thus the petitioner has presented this Writ Petition with incomplete picture of the facts. 15. It is well settled that those who have approached under Article 226 of the Constitution of India, exercising writ jurisdiction has to come to the court with absolutely clean hands and complete facts presented to the Court and if the court finds that there is a concealment of material facts, the court can refuse to go into the merits of the case at all and dismiss such Writ Petition only on the short ground of concealment of material facts. 16. In either of the case, this court is not inclined to entertain this petition on the short ground of alleged breach of principles of natural justice and on the cont....