Case: M. R. Patel Vs. State Of Bihar And Others

1. The appellant holds yearly licenses for the retail sale of country spirit in respect of six shops in the town of Jamshedpur working under the sliding scale system under the Bihar and Orissa Excise Act, 1915 (Bihar and Orissa Act 2 of 1915) hereinafter referred to as the Act. A total sum of Rs. 11,099/- was demanded and paid as security in respect of all the licenses. The original licenses in respect of the six shops were issued long ago and were renewed from year to year. By an order dated June 27, 1956, the Board of Revenue Bihar directed that "the security deposit of an Excise shop working under the sliding scale system is hereby fixed as equivalent to two months average license fees of the shop." The security deposit payable by the appellant on the basis of this direction would amount to about Rs. 68,000/-. On November 14, 1956, the Commissioner of Excise, Bihar directed the Deputy Commissioner, Singhbhum to realise from the appellant the deficit in the security deposits of his shops. This order was communicated to the appellant on December 7, 1956. On January 9, 1957, the appellant filed a petition before the Board of Revenue, praying for a revision of the order of the Excise Commissioner dated November 14, 1956. By order dated March 20, 1957 the Board of Revenue held that the merits of the appellants case need not be examined at that stage, and observed that the order of the Excise Commissioner would constitute no bar to the appellant moving the Commissioner for considering the special circumstances, if any, of his case on merits and, for this purpose, it would be open to the appellant to move the Commissioner in an appropriate manner.Subsequently, the appellant moved the Excise Commissioner for reconsideration and setting aside of his previous order dated November 14, 1956. By his order dated March 5, 1958, the Commissioner of Excise, in supersession of his previous order, directed that in the special circumstances of the case, the security deposit in respect of the appellants shops need not be increased and the appellant could continue to manage the shops on the existing total security of Rs. 11,099/- only. In spite of a representation made by the Deputy Commissioner, Singhbhum, the Excise Commissioner refused to revise this order. On June 27, 1958, at the request of the Deputy Commissioner, Singhbhum, the Commissioner, Chotanagpur Division, referred the matter to the Board of revenue. On April 24, 1959, the Board of Revenue directed the issue of a notice to the appellant asking him to show cause why he should not be ordered to pay the difference between the prescribed security deposit and the amount already deposited. By a petition dated July 30, 1959, the appellant showed cause. At the hearing of the case before the Board of Revenue, the appellant was represented by counsel. By an order dated October 4, 1959, the Board of Revenue, in exercise of its powers of revision under S. 8 of the Act, set aside, the order of the Commissioner of Excise dated March 5, 1958, with the direction that until the expiry of the current licenses on March 31, 1960 there would be no change in the amount of security, but the proper security in terms of the general directions issued by the Board should be demanded from the licensee at the time of the renewal of the licenses, with effect from the next licensing year. The appellant now appeals to this Court from this order by special leave1. The appellant holds yearly licenses for the retail sale of country spirit in respect of six shops in the town of Jamshedpur working under the sliding scale system under the Bihar and Orissa Excise Act, 1915 (Bihar and Orissa Act 2 of 1915) hereinafter referred to as the Act. A total sum of Rs. 11,099/was demanded and paid as security in respect of all the licenses. The original licenses in respect of the six shops were issued long ago and were renewed from year to year. By an order dated June 27, 1956, the Board of Revenue Bihar directed that "the security deposit of an Excise shop working under the sliding scale system is hereby fixed as equivalent to two months average license fees of the shop." The security deposit payable by the appellant on the basis of this direction would amount to about Rs.. On November 14, 1956, the Commissioner of Excise, Bihar directed the Deputy Commissioner, Singhbhum to realise from the appellant the deficit in the security deposits of his shops. This order was communicated to the appellant on December 7, 1956. On January 9, 1957, the appellant filed a petition before the Board of Revenue, praying for a revision of the order of the Excise Commissioner dated November 14, 1956. By order dated March 20, 1957 the Board of Revenue held that the merits of the appellants case need not be examined at that stage, and observed that the order of the Excise Commissioner would constitute no bar to the appellant moving the Commissioner for considering the special circumstances, if any, of his case on merits and, for this purpose, it would be open to the appellant to move the Commissioner in an appropriate manner.Subsequently, the appellant moved the Excise Commissioner for reconsideration and setting aside of his previous order dated November 14, 1956. By his order dated March 5, 1958, the Commissioner of Excise, in supersession of his previous order, directed that in the special circumstances of the case, the security deposit in respect of the appellants shops need not be increased and the appellant could continue to manage the shops on the existing total security of Rs. 11,099/only. In spite of a representation made by the Deputy Commissioner, Singhbhum, the Excise Commissioner refused to revise this order. On June 27, 1958, at the request of the Deputy Commissioner, Singhbhum, the Commissioner, Chotanagpur Division, referred the matter to the Board of revenue. On April 24, 1959, the Board of Revenue directed the issue of a notice to the appellant asking him to show cause why he should not be ordered to pay the difference between the prescribed security deposit and the amount already deposited. By a petition dated July 30, 1959, the appellant showed cause. At the hearing of the case before the Board of Revenue, the appellant was represented by counsel. By an order dated October 4, 1959, the Board of Revenue, in exercise of its powers of revision under S. 8 of the Act, set aside, the order of the Commissioner of Excise dated March 5, 1958, with the direction that until the expiry of the current licenses on March 31, 1960 there would be no change in the amount of security, but the proper security in terms of the general directions issued by the Board should be demanded from the licensee at the time of the renewal of the licenses, with effect from the next licensing year. The appellant now appeals to this Court from this order by special

Reasoning: The finality of S. 35 did not attach to these orders and the Board of Revenue had ample power to revise them under S. 8On a true construction of Ss. 38 and 91 of the Act it must be held that the Board, in exercise of its powers under S. 38 read with S. 91, could from time to time issue general directions with regard to the conditions of any license granted under the Act including the amount of the security to be deposited by the license. In exercise of its powers under Ss. 38 and 91, the Board had fixed the security deposit of an Excise shop working under the sliding scale system as equivalent to two months average license fees of the shop. The Board was entitled to direct, as it did by the order dated October 4, 1961, that the general directions issued by it under Ss. 38 and 91 should be observed and carried out by the licensing authority and the proper security in accordance with those directions should be demanded if and when the licenses were next renewedThere is not substance in this contention. In its order dated October 4, 1959, the Board of Revenue exhaustively reviewed all the relevant instructions issued by it from time to time, and rightly pointed out that instruction No. 101 (10) read with the Boards circular letter No. 8624, dated September 9, 1956 did not prevent increase of the security at the time of the renewal of the licensesThere is no substance in these contentions. The Board of Revenue may exercise its powers of revision under S. 8 (3) suo motu. No period of limitation is prescribed by the Act for exercise of the power of revision under S. 8 (3).. Prasad drew our attention to paragraph 71, Chap, V of Part III of the Bihar Practice and Procedure Manual, 1958, pp. 99 and 100, which provides that where there is no provision of law as to the period within which an application for revision may be allowed, the application for revision should be preferred within one month of the date of the Commissioners order deducting the time occupied in obtaining a copy of the order, but the Board has a discretion to admit the application for revision preferred after one month. In the instant case, in its order, dated October 4, 1959, the Board stated that it would exercise its powers of revision suo motu. In a case where the Board exercises its power of revision of its own motion, no question of limitation arises. Moreover, the Board held that this was a fit case for interference even after the expiry of the ordinary period of limitationNo other arguments were advanced before us. We see no reason to interfere with the Boards order. The learned Attorney-General raised a preliminary objection as to the maintainability of the appeal on the ground that the Board is not a tribunal within the meaning of Art. 136 of the Constitution. In view of our conclusion that the appellant has no case on the merits, we do not think it necessary to express any opinion on the preliminary objection