Delhi HC issues notice in Plea against New Excise Policy

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Aishwarya Rathore-

Published on August 04, 2021, at 6:50 PM

On Wednesday, the Delhi High Court issued notice on a plea brought by liquor traders and vendors challenging the Delhi Government’s New Excise Policy for 2021-22.

The Division Bench asked the Delhi Government, the Excise Commissioner, the Lieutenant Governor of Delhi, and the Centre for a response on the issue.

The development came after senior counsel Dr. Arun Mohan, representing the Delhi Liquor Traders Association, informed the Bench that an Amended Memo of parties had been filed in response to the previous order, removing Deputy Chief Minister Manish Sisodia and John Doe (unknown respondent) from the memo of parties.

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 Petitioners hold retail/wholesale licenses issued by the Excise Commissioner, in accordance with the Delhi Excise Act, 2009. 

The petition claimed that the New Excise Policy encourages monopolistic cartels while barring non-super-rich people from competing. It enables the licensee to recover taxes from the public and non-payment of the same to the Government.

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 the law, so as to prevent monopoly and cartelization.

The petition requested that the existing L-7/L-1 licences issued by the Excise Commissioner be continued until such policy is formulated. In addition, the Plea requested the quashing of a tender dated June 28, 2021, as well as any subsequent actions are done in connection with the tender.

Furthermore, the petitioner sought a declaration that the sovereign right to collect taxes cannot be auctioned by a State by way of the New Excise Policy.

Also Read: Delhi HC issues Notice in plea challenging New Excise Policy

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