The Delhi High Court on Wednesday issued notice on a petition filed by liquor traders and vendors challenging the New Excise Policy for year 2021-22, announced by the Delhi Government in June this year.
The Division Bench, led by Chief Justice D.N. Patel and also comprising Justice Jyoti Singh, sought response from the Delhi Government, the Excise Commissioner, the Lieutenant Governor of Delhi as well as the Centre on the issue, and slated the matter for hearing on August 9.
The development came after senior counsel Dr Arun Mohan, representing the Delhi Liquor Traders Association, informed the Bench that an amended memo of parties, dropping Deputy Chief Minister Manish Sisodia and John Doe (unknown respondent) from the array of parties, has been filed in pursuance of the previous order.
The other two petitioners in the matter – Kashish Electricity Services Pvt Ltd and Harish Chauhan, were represented by Senior Counsel Parag Tripathi. On the other hand, the Delhi Government was represented by senior counsels Dr Abhishek Singhvi and Rahul Mehra.
The Bench, on the last date of hearing on July 22, 2021, refused to issue notice in the matter till the time an amended memo of parties, after deleting Respondents No. 2 and 6 (Deputy CM and John Doe respectively) from the array of parties, is filed.
The plea was filed through Advocates Arvind Bhatt and Siddharth Sharma by the Delhi Liquor Traders Association, an unregistered body of 143 liquor traders in Delhi; Kashish Electricity Services Pvt Ltd, a private limited company having a retail liquor vend in Delhi; and one Harish Chauhan, a retail liquor vendor.
The petitioners hold retail/wholesale licenses issued by the Excise Commissioner, in accordance with the Delhi Excise Act, 2009.
The plea contended that the Delhi Government constituted a Group of Ministers (GoM) under the Chairmanship of the Deputy Chief Minister, and comprising Ministers Kailash Gehlot and Satyendra Jain, to finalise a new excise policy for Delhi for 2021-22.
The GoM made an announcement on March 22, 2021 on formulation of the new Excise Policy. Pursuant to the report by the GoM, the new Excise Policy was introduced by the Delhi Government in June this year; however, the policy was released in public domain on July 5, 2021, after the direction of the Court.
On June 28, 2021, the Delhi Government floated a tender, inviting e-bids for grant of 32 zonal retail licences for 2021-22 through e-tendering process in the form of L-7Z/L-7V for the sale of Indian and Foreign Liquor in the region of NCT of Delhi, on the basis of the newly-approved policy.
The last date for submission of bids was July 20, 2021. The tender regime, however, failed to publish criteria for fixation of maximum retail price.
The petition averred that the policy facilitates monopolistic cartel, while debarring the non-super-rich from entering into the competition. It enables the licensee to recover taxes from the public and non-payment of the same to the Government.
“Taxing is an essential legislative function. It cannot be delegated to its subordinate (executive). The Excise Commissioner is not empowered under the Act to impose fresh tax,” it stated.
The petition sought quashing of the New Excise Policy as being ultra vires of Article 14 of the Constitution, and a direction to the Delhi Government to frame an Excise Policy in compliance with law, so as to prevent monopoly and cartelization.
Till such policy is formulated, the plea sought direction for continuation of the existing L-7/L-1 licences issued by the Excise Commissioner. In addition, the plea also sought quashing of a tender dated June 28, 2021, including all consequential action taken in furtherance of the said tender.
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Furthermore, the petitioner sought declaration that the sovereign right to collect taxes cannot be auctioned by a State by way of the new excise policy.
Earlier on July 5, 2021, the Bench of Justice Rekha Palli of Delhi High Court had discarded the plea filed by Delhi Liquor Traders Association, seeking direction to make the New Excise Policy for 2021-22 available in public domain, after the Government undertook to upload the said policy on the website by the end of that day.