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5. After the institution and admission of these writ petitions for consideration, the State Government issued G.O. Ms. No. 525, Revenue (Ex.III) Department, dated 31-7-2000, purporting to be under Rule 37(1) of the A.P. Distilleries Rules, 1970 for conversion of manual bottling lines into semi automatic/ automatic bottling lines and sanction of one separate bottling line for manufacture of 90 ml bottles. This order was issued in respect of 28 distilleries set out in the table, in G.O. Ms. No. 525.

Even in the Excise Policy for the year 2000-2001 issued vide G.O. Ms. No. 168, Revenue (Excise.II) Department, dated 31-3-2000, no new licences are sought to be given to set up distillery in the State. As on date the Government had permitted modernisation of existing distilleries, but not permitted any expansion proposal. The Government have permitted conversion of manual lines into Automatic/Semi Automatic as a hygienic measure. A new line for the manufacturing of 90 ml bottles exclusively was permitted to each Distillery keeping in view the Excise Policy.

(c) G.O. Ms. No. 168 Revenue (Excise.I) Department dated 31-3-2000, being the Excise Policy for the year 2000-2001 was issued by the State. One of the clauses of the policy permits "modernisation and expansion of the existing distilleries to the extent of improving operational hygiene and efficiency and decided not to issue licence to set up new IML distilleries as existing distilleries after modernisation and expansion can meet demand within the State." Pursuant to the above excise policy, managements of existing distilleries requested the State for permission for alteration and conversion of manual lines into Semi-Automatic/ Automatic lines and also for expansion of the capacity in view of the demand for their products in the market. The Government, having examined the request of the existing distilleries; and in view of it's excise policy for the year 2000-2001; and pursuant to the recommendations of the Commissioner of Prohibition and Excise, granted permission in G.O. Ms. No. 525 Revenue (Excise-III), Department dated 31-7-2000 for conversion of manual lines, permitting use of Semi-Automatic/Automatic bottling lines and also a separate Semi-Automatic/Automatic bottling line exclusively for manufacture of 90 ml bottles, to the various distilleries. In the said Government Order, the answering respondent was also accorded permission for conversion and for a separate bottling line for 90 ml bottles. "Respondent company had started the extra bottling line (3 belt) from 20-4-2001 and since then, the manufacturing capacity had been increased from 27,647 cases per month (Approx) to 47,711 cases per month (Approx) and the company is now paying an amount of Rs. 1,28,46,540 (Approx) per month towards, excise duty. Previous to expansion the respondent company was paying excise duty nearly to a tune of Rs. 69,16,880/- per month." (emphasis)

13. Along with the 'additional common counter-affidavit' dated 17-9-2001 some documents were filed on behalf of the 1st respondent-State, by the learned Advocate General. These are:

(a) Capacities of utilisation of existing distilleries before conversion into automatic and semi-automatic lines and an additional line for packaging of the 90 ml. bottles (permitted in G.O. Ms. No. 525, dated 31-7-2000);

(b) Capacities of utilisation of the existing distilleries after the conversion and addition of line i.e., subsequent to G.O. Ms. No. 525; and