TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 223
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....ithin the domain of the Excise Act. 2. The issue involved herein for consideration, before us would be very limited in its context, as regards to the principles flowing from the judgment of M/s. Embassy Property Developments Pvt. Ltd. v. State of Karnataka, as reported in 2020 Vol 13 SCC Page 308. The issue therein, that was decided was, as to what would be the ambit of exercise of powers under the provisions contained under Section 60 (5) of the Code, for the purposes of seeking mandatory direction for renewal of license, which is otherwise under law is a sovereign functioning of the State, with regards to the Excise / Distillery License and that too after waiving out of the statutory pre- requisites, which falls to be within a statutory domain of the excise of powers by the regulatory bodies and such other authorities, which cannot be permitted to be overriden by the provisions of the I&B Code. The aforesaid principle was laid down by the Hon'ble Apex Court in the matters of M/s. Embassy Property Developments Pvt. Ltd. v. State of Karnataka, 2020 Vol 13 SCC Page 308. The relevant part is extracted here under: 27. Though in Thressiamma Jacob v. Deptt. of Mining ....
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.... discharge certain specific functions, cannot be elevated to the status of a superior court having the power of judicial review over administrative action. Judicial review, as observed by this Court in Sub-Committee on Judicial Accountability v. Union of India flows from the concept of a higher law, namely, the Constitution. Para 61 of the said decision. captures this position as follows: (SCC pp. 738-39) "61. But where, as in this country and unlike in England, there is a written Constitution which constitutes the fundamental and in that sense a "higher law" and acts as a limitation upon the legislature and other organs of the State as grantees under the Constitution, the usual incidents of parliamentary sovereignty do not obtain and the concept is one of "limited government". Judicial review is, indeed, an incident of and flows from this concept of the fundamental and the higher law being the touchstone of the limits of the powers of the various organs of the State which derive power and authority under the Constitution and that the judicial wing is the interpreter of the Constitution and, therefore, of the limits of authority of the different organs of the State. It is ....
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....6.2025 in IA(plan)/13/2024. The said approved Resolution Plan was later on rectified, due to certain typographical error that had inadvertently crept in, and by an order that was passed on 12.06.2025, the claims admitted by the Resolution Professional was actually amounting to Rs.14,531.29 Lakhs, which was later on rectified by an order dated 26.06.2025. 5. But however, in these circumstances, while these processes were going on, the Respondent, in September 2025, is said to have filed an IA, being IA(IBC) No. 1544/2025, praying therein for the following relief: Under the circumstances stated above, the Applicant most respectfully prays that this Hon'ble Tribunal may be pleased: i. To declare that all excise dues, penalties and unclaimed liabilities of the Applicant as of the date of approval of resolution plan stand extinguished and discharged pursuant to the Resolution Plan approved by this Hon'ble Tribunal on 12.06.2025; and ii. Consequently, to direct the respondent to renew the excise licence of the Applicant without insisting upon payment of the extinguished dues and penalties. iii. Pass such further or other orders as this Hon&#....
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....na Distillery (Manufacture of Spirits) Rules, 2006. Hence, if at all, any renewal was required to be granted in relation to D2 RG License, as possessed by the Respondent, that would be falling within the exclusive domain and decision making of the state functionary, as traceable from Entry 8, of List 2 of the State List in the VIIth Schedule of Indian Constitution and so would the Telangana Excise Act of 1968, which are the enactments in the excise of the Constitutional powers vested under Article 246 of the Constitution of India. 8. The provisions of the Telangana Excise Act, 1968, unequivocally provides that, there is no provision contemplated under the Telangana Excise Act, or the Rules of 2006 of providing with an automatic renewal without payment or after an exemption in payment of renewal fee, renewal is discretionary and is always subject to fulfilment of certain mandatory pre-conditions be satisfied as contemplated under the Rules. The renewal of the license too is preceded by a condition that, it has had to be only after the payment of the prescribed fee and the late fee too as the facts maybe, which is abundantly conditioned for the purposes of grant of renewal of the ....
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....vation that has been made by the Learned Tribunal of issuing a directions to the Respondent therein, i.e., M/s. Nadhi Bio Products Pvt Ltd., which does not impugnes the Telangana State Excise Department, no such direction of the nature, given in the order by way of a direction to renew the license with effect from 2022 - 2023 onwards and that too without seeking for renewal of fee, could not at all have been granted and that too in the absence of the Appellant, being made as a party and being heard and more particularly when the excise laws, being a law predominantly covered by the Constitutional mandate, there could not have been any direction by the Learned Adjudicating Authority, to renew the license and that too without payment of fee. Such type of a direction, could not have been issued, since apparently being beyond the ambit and the scope of the exercise of powers of the Adjudicating Authority, which is restricted to exercise its powers, within the ambit of the subjects covered under the I&B Code, as renewal of a license and that too when the excise license, since being exclusively within the prerogative of the state subject under the Constitution. No such direction for rene....