Case Law Details
Section 14 of the Punjab Excise Act, 1914 does not confer a power upon the appellate authority to pass an order more burdensome than the order appealed against. It does not entitle the appellate authority to enhance the penalty. Our attention was not invited to any other provision of the Act that indicated such a power either. Absent a power to the contrary conferred by a statute, an appellate authority cannot grant a relief in favour of the respondent. It can either confirm the order appealed against or set it aside. It can also modify the order, but not to the further detriment of the appellant except as to an order for costs.
1. The petitioner has sought a writ of certiorari to quash orders dated 03.08.2016 and 13.05.2016 passed by respondents No. 1 and 2 i.e. the Financial Commissioner Taxation, Punjab and the Collector-cum-Deputy Excise and Taxation Commissioner, Ferozepur Division.
2. The question that arises in this petition is whether the appellate authority is entitled to enhance the penalty in an appeal filed by the assessee under Section 14 of the Punjab Excise Act, 1914 (in short the Act).
3. The petitioner was granted an L-14A license entitling it to conduct retail business in country liquor. By an order dated 13.05.2016, respondent No. 2 – Collector-cum-Deputy Excise and Taxation Commissioner, Ferozepur Division held that the petitioner had violated the excise rules making itself liable for punishment under the Act including the cancellation of the license. However, keeping in view the government revenue and to ensure the supply of liquor to the public, respondent No. 2 ordered the petitioner’s liquor vend to be suspended from 13.05.2016 to 19.05.2016. The petitioner challenged this order in an appeal under Section 14 of the Act before the Excise and Taxation Commissioner. By an interim order dated 18.05.2016, the Excise and Taxation Commissioner stayed the operation of the order dated 13.05.2016 subject to the petitioner paying Rs. 1 lac. The petitioner paid the amount of ` 1 lac and availed the benefit of the order. Ultimately, the Excise and Taxation Commissioner by an order dated 03.08.2016, dismissed the appeal.
4. The dismissal of the appeal has not been challenged before us. The petitioner has restricted the challenge to the order in so far as the Excise and Taxation Commissioner imposed “an additional penalty of ` 4 lacs over and above the previous penalty of Rs. 1 lac”.
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