Amendment status not verified — confirm the current text below against the official source.
Insertion of new sections after sections 22 of Bihar Act II, 1915 – In the Bihar Excise Act, 1915 (Bihar Act II, 1915) (hereinafter referred to as the said Act) after Section 22, the following new sections shall be inserted, namely; (2) Notwithstanding such repeal, anything done or any action taken in exercise of any power conferred by or under the said Ordinance shall be deemed to have been done or taken in exercise of the powers conferred by or under this Act as if this Act were in force on the day on which such thing was done or action taken. THE BIHAR EXCISE (AMENDMENT AND VALIDATING) Act, 1998 (6 of 1998) An Act to Amend The Bihar Excise Act, 1915 OBJECTS AND REASONS In the State of Bihar, the grant of exclusive privilege of wholesale supply of country liquor is governed under section 22 of the Bihar Excise Act, 1915. (2) As, per provisions, as contained in clause 2 (Kha) of the tender notice, effective from 1st July 1995, each of the contractors in a particular zone, shall pay in advance in one lump sum. Proportionate licence fee at the rate of Re. 1 Per L.P Litre on the minimum guaranteed quoto specified for the zone. If, during any financial year, the supply of country liquor exceeds, the minimum guaranteed quoto additional licence fee shall be payable to that extent. (3) Whereas, the two grantees have challenged the realisation of licence fee before the Ranchi Bench, of the Hon’ble Patna High Court. Their contention was that within the same zone each of the grantees cannot be compelled to pay the whole amount of licence fee, as his liability is confident to payment of licence fee in equal proportion, that is to say, the total amount of licence fee has to be paid by the grantees in equal proportions. The Hon’ble High Court accepted this contention was allowed the writ petitions. Thereafter, the State of Bihar preferred an appeal through S.L.P before the Hon’ble Supreme Court. The Hon’ble Supreme Court affirmed the judgment of the Hon’ble Patna High Court, Ranchi Bench. (4) Under the above circumstances the existing system of realisation of licence fee at the rate of Re. 1 per L.P litre from each grantees of a specified zone and to legitimate the realised licence fee, it has become necessary to validate the said provisions of the Act. Therefore, necessary provisions have been made in the Act, enactment of which is the object of this Act. Preamble:- WHEREAS, the cabinet had approved the proposal of the Excise & Prohibition Department for imposing licence fee on every licence of the zone at the rate of Rupee 1 per L.P Litre on the M.G.Q of the zone and the tender notice was to be issued accordingly. AND, WHEREAS, the tender notice was issued for the period of 1st July 1995 to 31st March 1999 and the period of supply of country liquor during the first year being only 9 months the Excise & Prohibition Department intended to grant a proportionate reduction of licence fee for the shorter period and with this intention had used the expression, on “Samanupatik” in the tender notice and licence. AND, WHEREAS, at the time of negotiations of rates and its determination all the tenderers were fully aware of the number of tenderers in each zone and the rate was fixed and agreed upon after including Rs. 2 per L.P Litre for covering the licence fee burden which was intended to be passed on to the retailer/ consumer. AND, WHEREAS, The tenderers had accepted the rate fixed in writing and 13 count of 15 tenderers paid the licence fee at the rate of Rupee 1 per L.P litre on M.G.Q for the years 1995-96, 1996-97 and 1997-98 and did not challenge the imposition of the said licence fee; AND WHEREAS, only two tenderers filed writ petitions in the Patna High Court, after depositing licence fee at the above rate for the period 1995-96 and all the tenderers supplied monthly liquor at the fixed agreed rate and passed on the licence fee burden to the retailer/ consumer. AND WHEREAS, the Hon’ble Supreme Court and the High Court held that the expression “samanpatik”, in the context, meant that the total licence fee for the zone was to be paid by the licensees of the zone in equal proportion. AND WHEREAS, the Hon’ble Supreme Court had held that the State will not be able to charge from each contractor in a zone the full licence fee unless it is so provided clearly in the tender condition and the conditions of licence: AND WHEREAS, it had become necessary to validate and impose licence fee in accordance with the intended of the policy approved by the Cabinet on 13th June 1995, by rectifying the unintended error in the tender notice dated 3rd June 1995 and the licences issued in pursuance thereof, and also to validate the collection of license fee already made from each licencee: Be it enacted by the Legislature of the State of Bihar in the forty-ninth year of the Republic of India, as follows: