TaxTMI 
TaxTMI 
2019 (2) TMI 2156
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....in the form of D-1 granted in the year 2017. A tender notice was issued for supply of country spirit in sealed bottles, in the State of Madhya Pradesh for the year 2018-2019. The condition imposed for participating in the tender was that the tenderer must have a licence for manufacturing, bottling and wholesale supply of country spirit in the State of Madhya Pradesh, issued in the form of CS-1 licence. Clause 2(i) of the tender notice dated 03.02.2018 was challenged by the Appellant on the ground that the stipulation pertaining to possession of CS-1 licence was contrary to Rule 3 of the Madhya Pradesh Country Spirit Rules, 1995 (hereinafter referred to as 'the Rules') since such licence could not be granted unless the distiller has particip....
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....eunder required allotment of an area for grant of CS-1 licence. 4. The High Court dismissed the Writ Petition by observing that allotment of an area was an imperative precondition for grant of CS-1 licence. The High Court further held that there was no fundamental right to trade in liquor and opined that the Appellant was not entitled to any relief. Clause 2 (i) of the tender notice dated 03.02.2018 issued by the Respondents provides that a distiller having a proper licence for manufacturing, bottling and wholesale supply of country spirit shall be eligible to participate in the tender process. The validity of the said condition was challenged by the Appellant in Writ Petition No.6525 of 2018 in the High Court of Madhya Pradesh. The Appe....
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....ssuance of CS-1 licence. The application filed by the Appellant for issuance of CS-1 licence was rejected by the Respondents on the ground that the Appellant did not participate in the tender process. 5. Section 18 of the Act which confers power on the State Government to grant lease of right to manufacture, etc. and Rule 3 of the Rules read as follows: "18. Power to grant lease of right to manufacture, etc. - (1) The State Government may lease to any person, on such conditions and for such period as it may think fit, the right- (a) of manufacturing, or of supplying by wholesale or of both; or (b) of selling by wholesale or by retail; or (c) of manufacturing or of supplying by wholesale, or of bo....
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.... Rule 3 that CS-1 licence will be granted only to a person who participated in the tender process. The order passed by the Respondent No.2 is arbitrary and contrary to Section 18 of the Act and Rule 3 of the Rules. By the impugned judgment the High Court held that allotment of an area is a pre-condition for issuance of the CS-1 licence without examining the judgment in Writ Petition No.6525 of 2018. Reference made to Writ Petition No. 6525 of 2018 was restricted to recording a finding that the said Writ Petition was dismissed and the contentions raised by the Appellant in the said Writ Petition were negatived. To our understanding, Rule 3 (1) provides for allotment of an area to a person who is given a CS-1 licence. Participation in the pro....