THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE B.N.RAO NALLA WRIT APPEAL No.1459 of 2009 Dated:21.12.2009 Between: M/s.T.J.Cellulose (P) Ltd. …Appellant and The Commissioner of Prohibition & Excise, Office of the Commissioner of Prohibition & Excise, Andhra Pradesh, Nampally, Hyderabad. …Respondent THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE B.N.RAO NALLA WRIT APPEAL No.1459 of 2009 JUDGMENT: (per Hon’ble Sri Justice V.V.S.Rao) The appellant is a company engaged in the business of manufacturing and marketing of Sodium Corboxy Methyl Cellulose and Polyonic Cellulose for which rectified spirit (Impure Spirit) is the main raw material. As required under the Andhra Pradesh Rectified Spirit Rules, 1971 (the Rules, for brevity), they obtained Form R.S-III licence. As per conditions of licence the appellant’s business is regulated by the provisions of the Andhra Pradesh Excise Act, 1968 (the Act, for brevity), and the Rules referred to hereinabove as well as the conditions of licence. On 09.09.2009 the Deputy Commissioner of Prohibition and Excise, Chittoor, submitted a report that a Tata Sumo vehicle was stopped and checked. It was found carrying 25 white plastic cans containing 35 litres each (total 875 bulk litres of rectified spirit). On interrogation, the driver allegedly disclosed that the stock belongs to the appellant herein. A report was submitted to the respondent who in exercise of his powers under Section 31 of the Act passed an order dated 29.10.2009 suspending R.S-III licence of the appellant pending further enquiry. Assailing the same, the appellant filed a writ petition, being W.P.No.25984 of 2009. The same having been disposed of by the learned single Judge on 30.11.2009 the present appeal is preferred, inter alia, contending that even while suspending temporarily the licence of the appellant, Rule 18 of the Rules is attracted and the appellant is entitled to a notice before suspension of Form R.S-III licence. The learned Single Judge has placed reliance on the judgment of the Full Bench of this Court in Tappers Co-operative Society, Maddur v Superintendent of Excise, Mahaboobnagar[1], wherein it was held that suspension as a penal action requires a prior notice, but suspension pending enquiry leading to either cancellation or suspension of a licence granted under the Act does not require a notice. The learned Counsel, however, relies on para 44 of the judgment of the Full Bench in support of his vehement contention that when the power is exercised to suspend the licence under Rule 18 thereof, a notice is mandatory. After perusing the relevant paras in the Full Bench judgment as well as Rule 18 of the Rules we are not able to countenance the submission of the learned Counsel for the appellant. Rule 18 of the Rules reads as under. 18. (1) If the licensee or permit holder under these rules is guilty of breach of any of the rules, his licence or permit is liable for cancellation and he will also be prosecuted under the relevant provisions of the Act. (2) The licence is also liable to be suspended by the licensing authority pending investigation or enquiry in breach of these rules or licence conditions by the licensee or by any person in his employ; Provided that cancellation under sub-rule (1) and suspension under sub-rule (2) shall not be made until the holder of the licence has been given an opportunity for showing cause against the action proposed to be taken. (3) Every such order shall be in writing and shall specify the reasons for the suspension or cancellation and shall be communicated to the licensee. (4) When a licence is cancelled or suspended under this rule, the holder of the licence shall not be entitled to claim from the Government any compensation or refund of licence fee for such cancellation or suspension. It is now axiomatic that the provisions in the Act or the Rules has to be read avoiding truncated and piecemeal reading. On such perusal of Rule 18 we are convinced that the proviso between sub rule (2) and (3) is attracted only when the competent authority exercises power either under Rule 18(1) or 18(2) of the Rules and it has no such application when the power is exercised by the competent authority is not in relation to Rule 18(1) and 18(2) of the Rules and it is a general power exercised under Section 31 of the Act. To illustrate, we may mention an imaginative case where the licence of a distillery is cancelled or suspended as a punishment for contravention of the provisions of the Act, the Rules and conditions of licence. In such a case the proviso below Rule 18(1) and (2) of the Rules mandates that it shall have to be preceded by a show cause notice to be issued to the licensee against the action proposed to be taken. If pending such an order of cancellation/suspension, which will be necessarily after a due enquiry, no such notice is contemplated. Dealing with the similar notice under relevant Rules, the Full Bench held as below. The power of suspension which is concomitant or adjunct is no doubt restricted by the statutory provision under the proviso in question to pass final orders of suspension but that power cannot be said to have been taken away to pass an interim order of suspension not intended to be a penalty but only interim measure to pass effective orders. This conclusion of ours applies with greater force when we notice that we are concerned with the liquor licences in which the citizen has no right guaranteed under Art.19(1)(g) of the Constitution of India but only a privilege. No doubt once a licence is granted valuable right would accrue to him and that can be taken away as per the provisions of the Act. But, as a rule of construction the proviso cannot have a larger effect than it intended to govern the final disciplinary proceedings of suspending or canceling a licence of permit… In that view of the matter, we do not find any error in the impugned judgment of the learned single Judge. The Writ Appeal is, therefore, dismissed. There shall be no order as to costs. _______________ (V.V.S.RAO, J) ________________ (B.N.RAO NALLA, J) 21.12.2009 vs [1] 1984 (2) APLJ 1 (FB)