T.Gunasekhar vs State Of Andhra Pradesh, on 7 May, 2020
On the basis of a report of the Prohibition and Excise Superintendent
dated 11.04.2020 that a physical verification of liquor stocks in the bar
premises was conducted on 10.04.2020 and the ground stock was verified
with reference to closing balance as on 21.03.2020 and that there are
manipulations and over-writings in the figures in closing stock, a case was
registered against the petitioner under Section 36 (b) and (c) of the
A.P.Excise Act. Subsequently, the 3rd respondent issued a show cause
notice dated 11.04.2020 to show cause as to why license granted to the
petitioner shall not be suspended and seven days time from the date of
receipt of the notice was granted for submitting the explanation. The
petitioner submitted his explanation dated 19.04.2020 inter alia contending
that issuance of show cause notice, giving seven days time for submission of
explanation is contrary to law laid down in N.Mallareddy v. State of
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Andhra Pradesh1, wherein the Hon'ble Court categorically held that a
minimum period of 15 days time has to be granted to the licensee for
submitting explanation and that in view of the same, the show cause notice
dated 11.04.2020 granting seven days time itself is illegal. In the
explanation, it is further stated that the power to register a case under
Section 36(b) and (c) of the A.P.Excise Act would arise only if there is any
willful omission or breach of any of the conditions of license or contravention
of any rule under the Act and that in the show cause notice, contravention
of any of the provisions of the Act or rules was alleged and that the notice
was vague. In the explanation, it is stated that the bar premises was sealed
by the Excise Department on 22.03.2020 and the same was opened on
14.04.2020 by the Excise Department and when the seals were intact and
there is no allegation of tampering of any seals, merely because there was
good business on 21.03.2020 itself cannot be a ground for issuance of show
cause notice and that increase in the sales on the particular day is due to
various factors and one of the factor being that the closure of the bar on the
next day. It is further stated that increase in sales of liquor on a particular
day compared to the earlier days cannot by itself be a ground to presume
that there is violation or infraction of the provisions of the Act and the Rules
made there-under. The petitioner while denying that they did not abide by
the orders of the Collector, further stated that Excise Act does not empower
the invocation of powers under Section 31 of A.P.Excise Act on assumptions.
The petitioner also sought for personal hearing before passing any order.