Provisions Under New Excise Policy Only Applicable To New Applications, Not On Pre-Existing Godowns: Rajasthan High Court

The Rajasthan High Court rejected a petition filed by a liquor license owner apprehending that her license won't be renewed owing to an amendment in the Rajasthan Excise and Legal Temperance Policy 2024-25 (“the Policy), ruling that the petition was pre-matured, and that mere apprehension of not being granted renewal under new Policy was not enough to maintain the petition.The division bench of Justice Shree Chandrashekhar and Justice Sandeep Shah held that it was well settled that a new policy would operate prospectively, and the persons carrying on the business in a legal manner under the old policy could not be subjected to the rigors of the new policy. The court said:“This provision under the Excise Policy, 2025-2029 shall be applicable for the fresh application for setting up a godown and not to the holder of a pre existing godown. It is too well settled that a new policy would operate prospectively and the persons carrying on business in a legal manner under the old policy cannot be subjected to rigors of the new policy as provided under clause 2.12.3.”The petitioner obtained a liquor license which was renewed till 2025 under the Policy. There was a Clause 2.7.3 in the Policy as per which license won't be granted if the shop was located less than 1 km from another neighbouring licensed shops, or for shops in urban areas, located at less than 50 meters from neighbouring licensed shops. However, in the new Policy of 2025-2029, there was a modification and these distances were increased to 3 kms and 500 meters respectively. When the petitioner made an application under the new Policy for renewal of the license for 2025 to 2029, a complaint was lodged by a third-party alleging breach of the distance requirement under the new Policy. This was followed by an inquiry, and based on the report by the Excise Inspector recommending cancellation of permission to the petition, a show cause notice was issued by the District Excise Officer to the petitioner seeking reply. It was submitted on behalf of the petitioner that it was impossible for the petitioner to maintain the distances stipulated in the new Policy, and that such a drastic change would compel the license holders to relocate their shops/warehouses at exorbitant costs. It was further submitted that such a requirement would violate the petitioner's rights under Article 14 and 19(1)(g). After hearing the contentions, the Court observed that the petitioner rushed to the Court merely on an apprehension, and that the petitioner's anxiety seemed unnecessary, premature and not founded on any valid ground.Furthermore, reference was made to the Supreme Court case of Khoday Distilleries Ltd. & Ors. v. State of Karnataka & Ors. in which it was held that no citizen had a fundamental right to trade in liquor. Further it was observed that mere hardship was not a ground to challenge a statutory provision which was otherwise uniformly applicable to all fresh applicants. Hence, no violation of Article 19(1)(g) could be accepted.Lastly, while assessing the validity of the show cause notice issued to the petitioner, the Court stated that the District Excise Officer was not bound by the recommendations of the Excise Inspector, and the petitioner was free to approach the Court in case of an adverse decision. Accordingly, the petition, which was considered pre-mature at the present stage, was dismissed. Title: Tulachhi wife of Dhanraj v State of Rajasthan & Ors. Citation: 2025 LiveLaw (Raj) 236Click Here To Read/Download Order

Provisions Under New Excise Policy Only Applicable To New Applications, Not On Pre-Existing Godowns: Rajasthan High Court

Nupur Agrawal

Tags