Rajasthan High Court dismisses Liquor Vendor’s plea seeking Tax Relief for Covid second wave period [Read Order]

Rajasthan High Court - Liquor Vendor - Tax Relief - Covid second wave period - Taxscan

The Jaipur Bench of Rajasthan High Court dismissed the Liquor Vendor’s plea seeking a waiver on the annual guarantee fee and tax relief for Covid’s second wave period.

As many as 120 petitions were filed wherein it was submitted that on account of the various lock-down orders, the licensed shops have virtually remained closed for more than 395 hours out of 680 hours. It is stated that in April and May, 2021, the shops remained closed for 64.28% of the time, and in June 2021, they remained closed for 67.74% of the time. It is further submitted that allowing the opening of liquor shops from 6.00 AM to 11.00 AM was wholly impractical as in the morning hours there is no sale of liquor at all and the sale was reduced immensely.

Mr. RN Mathur, Senior Advocate submitted that the criteria ought to be reasonable and having nexus to the purpose sought to be achieved. It is submitted that the curtailment or reduction of the annual guarantee amount of only 30% as laid down by the respondents is wholly impractical and does not take into consideration the aforesaid circumstances. While the reserve price for bidding of shops is fixed district-wise, 30% reduction is generalized for all shops in Rajasthan. Therefore, the benefit ought to be each district-wise. Learned Senior Counsel further submitted that the yardstick adopted is without application of mind and fixing the time of opening of liquor shops from 6.00 AM to 11.00 AM during five days of the week, is wholly unrealistic and unreasonable. It is submitted that no person comes for purchasing to the shops at the wee hours of the morning and in such circumstances, the State should compensate the dealers proportionally as per lock-down and actual liquor which has been lifted should be the criteria for payment of a first quarter of annual guarantee amount and the annual guarantee amount should be accordingly proportionally reduced instead of continuing to insist for payment on the basis of the bid offered by the petitioners earlier.

Mr. KK Sharma learned Senior Counsel submitted that while the petitioners had submitted their bids during the Covid Pandemic in the year 2020-21, no one could envisage the stipulate of pandemic upto March, 2021. Even the State Government did not put any clause of force majeure and an arbitrary obstinate approach has been taken by the State. When the reduction in the sale is upto 69.62%, the demand for continuing payment of the amount for which liquor has not been sifted or sold is wholly unjustified.

The single bench of Justice Sanjeev Prakash Sharma said that the Loss caused to them cannot be put on the shoulders of the Government as with their open eyes they have submitted higher bids and accepted the conditions of the policy. They cannot now turn around and claim as a right from this Court for mandamus as against the State.

“This Court, however, deems it appropriate to observe that granting of rebate in making payments is an exclusive discretion of the State and falls within the administrative domain of the State Government who has laid down the excise policy. The State Government would, therefore, be the best to take a decision whether further reduction/rebate is required to be granted to the liquor vendors. Leaving it open for the petitioners to take up their cause before the State Government, this Court is of the firm view that writ jurisdiction cannot be invoked for such demands,” the court said.

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