Authority: High Court of Himachal Pradesh at Shimla

Order Date: 06 July 2026

Case Overview

  • Petitioner (CWP 9721 2023): M/s Kanda Wine, a partnership firm, represented by partner Shri Arun Kumar, challenged the cancellation of its retail liquor licence (Form L‑2/L‑14/L‑14S, Unit No. 03, Santosgarh, District Una) and the freezing of its bank account. The licence covered nine vends and one sub‑vend and was originally allotted on 18 March 2023 for a fee of Rs 9,20,00,000.
  • Respondents: State of Himachal Pradesh (Financial Commissioner – Excise, Collector‑cum‑Joint Commissioner of State Taxes & Excise (North Zone) Palampur, Deputy Commissioner State Taxes & Excise Una, among others).
  • Grounds of Challenge: Non‑remission of licence fee for September‑October 2023, alleged natural calamity‑induced loss, unfair re‑auction to Respondent 5 (Gitanjali Dewedi), alleged arbitrary Condition 2.42 of the 2023‑24 Excise Announcements, and illegal freezing of the petitioner’s bank account.
  • Procedural History: Notices issued for unpaid licence fee; personal hearings on 09, 10, 15, 16 Nov 2023; final notice on 17 Nov 2023; licence cancelled on 18 Nov 2023 (Order P‑2). Appeal under Section 68(2) filed on 20 Nov 2023; appellate authority dismissed appeal on 22 Nov 2023 (Order P‑1). Connected writ petition CWP 115 2024 filed by Sanjeev Kumar & three others, seeking quash of the final notice dated 30 Nov 2023 (Rs 2,80,60,881 liability) and alleging false partnership deed.

Final Outcome

  • The court dismissed CWP 9721 2023, upholding the licence cancellation order of 18 Nov 2023 and the appellate dismissal of 22 Nov 2023. The freezing order and the challenge to Condition 2.42 were also rejected.
  • The court allowed State authorities to recover unpaid licence fees under Section 71 of the Himachal Pradesh Excise Act.
  • Regarding CWP 115 2024, the court directed the petitioners to file a Section 68 appeal against the final notice of 30 Nov 2023 within 30 days of the order (i.e., by 05 Aug 2026). The appellate authority must decide the appeal on merits by 15 Oct 2026, associating all respondents.
  • The final notice dated 30 Nov 2023 was stayed pending the appeal, and the State may not take coercive action against the petitioners until the appeal is decided.
  • Costs were awarded to each party as per usual practice.

Topics: Liquor licence enforcement, Excise tax compliance