Jammu Chamber of Commerce & Industry (JCCI) urged the government to protect and safeguard the interests of the JKEL-2 license holders while implementing the Excise Policy 2021-22.
These licenses should continue to be renewed in terms of the Jammu and Kashmir Liquor License and Sale Rules, 1984 governed by the J&K Excise Act SVT 1958.
In a statement issued to the press, the Chamber president Arun Gupta said, “Recent Draft Policy 2021-22 published has been framed totally in conflict with J&K Excise act SVAT-1958 (as amended) and finance department notification under SRO 679 dated 13-12-1984 (as amended till date).”
“It is a settled position of law as elaborated in a related judgement of the High Court dated 28-12-2020, that no policy can supersede Act and Rules for regulations in any trade. Act and Rules are crystal clear and define these JKEL-2 license holders as separate class or licenses on fixed fees i.e., regular licenses. Basic structure of grant and renewal of JKEL-2 license has been changed in the new draft policy for JKEL-2 trade through e-auction mode,” Gupta said.
He stated that while the High Court judgement dated 28-12-2020 clearly provided for framing of policy strictly in accordance with the Act and Rules, the draft excise policy was not only in violation of Excise Act and Rules but was also in total disregard to the judgement of the High Court.
“The High Court judgement in terms of para 90 (vii) clearly states that for the purpose of renewal of licenses for trade in liquor, if permissible in law, all conditions applicable for grant of new licence shall also be applicable. This does not mean that renewal of an earlier license is also to be done by way of auction. The licenses which have been granted by way of fixed fee per annum and are in operations for the last more than 5-6 decades is a class apart. In terms of rule 35 which clearly envisages a provision that the government can grant a license in any other manner. This provision has to be read in reference to rule 4, as well as the other relevant rules with respect to grant of license by way of renewal,” JCCI president said.
He said that the grant of license was a well recognised condition which was permissible under law and a number of courts had upheld the policy decision of the government treating the licenses already in existence on a fixed fee as a separate class apart.