Secretary Excise and Taxation v. Lavanya Spirits

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA

COPC No. 81 of 2026

In CWP No. 17494 of 2025 Decided on: 28.09.2026. ________________________________________________________

Devesh Kumar & Others

...Petitioners

Versus

M/s Lavanya Spirits

...Respondent

Coram:

Hon'ble Mr. Justice Ranjan Sharma, Judge 1Whether approved for reporting? Yes.

For the petitioners: Mr. Vishav Deep Sharma, Additional Advocate General.

For the respondent: Mr. Sanjeev Kuthiala, Sr. Advocate with Ms. Tamanna Sharma, Advocate.

Ranjan Sharma, Judge

Petitioners, being authorized signatories of Excise Department have invoked the contempt jurisdiction of this Court, alleging non-compliance of the order dated 29.12.2025 [Annexure CP-1], by Respondent-M/s Lavanya Spirits. The operative part of the order dated 29.12.2025, reads as under:

On the request of learned Senior Counsel for the petitioner(s) as also learned Advocate General, the hearing of this case is being deferred by six weeks, but, with the direction that in the interregnum, the earlier

Whether reporters of Local Papers may be allowed to see the judgment? order passed by this Court is modified to the effect that the petitioner(s) shall continue to pay the current licence fee in terms of the conditions of allotment of vends to the petitioner(s) and the arrears, if any, shall be cleared before 31.01.2026. The arrears shall also include the fee etc., for the period quo which the dispute has been raised by the petitioner(s) before this Court. It goes without saying that the deposition of this amount shall be construed to be under protest and shall abide by final adjudication of the writ petition. Besides this, it is further clarified that if the petitioner(s) do not clear the arrears by 31.01.2026, then, the State shall recover the same alongwith interest @ 6% simple interest, as from the date due, because, the benefit of deferred payment is being given to the petitioner(s) by this Court. It also goes without saying that if the current licence fee i.e., payable by the petitioner(s) is not paid by the petitioner(s) in the garb of this order, then, also the Department shall be at liberty to proceed against the petitioner(s) in accordance with law. It is further observed that the pendency of these petitions shall not come in the way of the State in considering the issues which have been raised by the petitioner(s) before this Court, sympathetically.

¶2Learned State Counsel submits that the order dated

29.12.2025 [Annexure CP-1] has not been complied with by Respondent-M/s Lavanya Spirits, as the license fee, in terms of the condition of allotment of vends and the arrears payable therefrom have not been deposited by the said Respondent before 31.01.2026. Learned State Counsel submits that Status of Outstanding License Fee, is enclosed as Annexure CP-2 whereas, Respondent-N/s Lavanya Spirits, was in arrears of License fee amounting to Rs.2,35,07,810/- as on

31.01.2026. In these circumstances, the instant petition was filed with the prayer to initiate contempt proceedings against Respondent-M/s Lavanya Spirit, for non-compliance of the order dated 29.12.2025 [Annexure CP-1].

¶3Instant petition [COPC No. 81 of 2026] was listed before a Coordinate Bench of this Court on 11.03.2026. 3(i) Upon service, matter was listed on

31.08.2026, when, Respondent herein filed a Reply-Affidavit, raising various pleas, on merits, giving reasons for not remitting the License Fee as per specified conditions. Reply-Affidavit admits the passing of the order dated 29.12.2025 [Annexure CP-1], with the plea, that the respondent was mandated to clear the arrears of License Fee by 31.01.2026 and for failure to deposit License Fee before 31.01.2026, the State Authorities were to recover the same alongwith interest @ 6% from the due date with liberty to the petitioner-department to proceed against Respondent herein in accordance with law. 3(ii). Besides above, Reply-Affidavit objected to the maintainability of the contempt petition. Moreover, respondent has taken a stand that the contempt petition was pre-mature, as the writ petition and the application [CWP No. 17494 of 2025 and CMP No. 26892 of 2025] were still pending. In this backdrop instant petition was opposed by Respondent.

4.

Matter was listed on 10.09.2026, when, Learned Senior Counsel for the Respondent herein, has pointed out that a similar Contempt Petition No. 80 of 2026 has been dismissed by a Coordinate Bench of this Court on 28.07.2026 being not maintainable.

¶5Faced with the above situation, matter was listed on 17.09.2026, when, Learned State Counsel prays for adjournment so as to enable him to have an update as to whether the orders passed on 28.07.2026 in another similar COPC No. 80 of 2026 have attained finality or not.

¶6Upon listing of the matter on 28.09.2026, Learned State Counsel has placed on record Instructions dated

28.09.2026, alongwith communication dated 28.09.2026 sent by Deputy Commissioner State Taxes and Excise Mandi, to Commissioner State Taxes and Excise, Shimla, regarding the action taken against the Respondent-M/s Lavanya Spirits towards recovery of pending License Fee, in following terms:-

"Exn-MND-Excise-Lavanya Spirits-2025-26-4278 O/o The Deputy Commissioner State Taxes and Excise, Mandi, District Mandi (H.P.)

To The Commissioner State Taxes & Excise, Himachal Pradesh, Shimla -9

Dated: Mandi 28th September, 2026.

Subject: COPC No. 80 of 2026 titled as Addl. Chief Secretary ETC Versus M/s Lavanya Spirits and other COPC No. 81 of 2026 ttiled as Addl. Chief Secretary ETC Vs. M/s Lavanya Spirits.

Kindly refer to your office letter on the subject cited above. In this context as per the order of Hon'ble High Court Shimla COPC No. 80 of 2026 following action has been taken against the defaulters as under:

¶1The pending license fee amounting to Rs.1,55,33,274/- has been declared as arrear under LRA.

¶2The Licensee has failed to deposit the interest accrued @6% which is Rs.6,06,470/- as on 28.09.2026. Further no amount of pending license fee and interest accrued has been deposited by the Licensee as per the orders issued by Hon'ble High Court in the matter of COPC No. 80 of 2026.

¶3The RED entry has been marked/recorded in the revenue record of the defaulter.

¶4The bank account of M/s Lavanya Spirits at PNB Ghumarwin and PNB Takoli has been seized.

¶5Follow up reminder notices has also been issued to the defaulters to deposit the arrear.

Submitted for your kind information and further necessary action please.

Yours faithfully,

Sd/- Deputy Commissioner State Taxes and Excise, Mandi, District Mandi (H.P.)

7.

Heard Mr. Vishav Deep Sharma, Additional Advocate General for the petitioners and Mr. Sanjeev Kuthiala, Senior Advocate assisted by Ms. Tamanna Sharma, Advocate, for the Respondent-herein ANALYSIS:

8.

Considering the factual matrix in the instant case this Court is of the considered view that instant contempt petition, alleging non-compliance of the orders dated 29.12.2025 [Annexure CP-1], is not maintainable, at this stage, for the reason, firstly, the order dated 29.12.2025 [Annexure CP-1] was a conditional order directing Respondent to deposit current License fee alongwith arrears by 31.01.2026, failing which the State was given the liberty to recover the same alongwith interest @6% simple interest from due date; and secondly, in case the Respondent did not deposit the arrears alongwith interest then in such an eventuality, the rights and interest of the Petitioners-State and Excise & Taxation Department were safeguarded, enabling the petitioners-department to recover the said amount alongwith interest in accordance with law; and thirdly, there is neither any willful nor any intentional disobedience on the part of the Respondent herein; and fourthly, the remedy of contempt is not a substitute for execution; and fifthly, material on record including Instructions dated

28.09.2026 indicate that the petitioner-State Authorities have already made efforts towards recovery of arrears alongwith interest from the Respondent herein by making recording RED Entry Marks in Revenue Records and by seizing Bank Accounts of M/s Lavanya Spirits at PNB Ghumarwin and PNB Takoli and bank accounts of another defaulter Licensee Dault Ram has also been seized and the pending arrears have been declared as arrears of land revenue, and notice-reminders has been issued to defaulters to deposit the arrears and failure to deposit shall lead to recovery under Land Revenue Act in accordance with Law; and sixthly, once the petitioner-State had unilaterally initiated action for recovery of arrears alongwith interest therefore, question of violation of orders cannot sustain, as petitioner(s)-State Authorities cannot approbate and reprobate; and seventhly, order dated

29.12.2025 [Annexure CP-1] was passed in Writ Petition No. 17494 of 2025 and in CMP No. 17502 of 2025, as an interim measure and aforesaid writ petition as well as application is pending and the rights of parties shall be adjudicated in the main proceedings; and in these circumstances, non-compliance does not appear to be willful and intentional, in view of the efforts-steps already initiated by Petitioners-State Authorities against the Respondent as referred to above; and lastly, in a similar Contempt Petition i.e. COPC No. 80 of 2026, a Coordinate Bench of this Court had dismissed a similar petition on 28.07.2026, as not maintainable, as the Petitioner-State therein, had already resorted to recourse by legal remedy in accordance with law; and even the orders dated

28.07.2026 passed in COPC No. 80 of 2026 had attained finality and despite opportunity Learned State Counsel, has not been able to establish that orders passed in identical contempt petition has been taken in appeal or has been set-aside or modified and having failed to assist this Court, therefore, the only inference is that the order dated 28.07.2026 in another COPC No. 80 of 2026 had attained finality.

9.

In view of the above discussion and for reasons recorded hereinabove, the present petition is not maintainable and resultantly, the same is dismissed.

¶10Sequel to the dismissal of instant petition, notice issued against Respondent is discharged.

¶11However, it is made clear that petitioners-State Authorities shall be at liberty to recover arrears of License Fee, alongwith interest, from Respondents herein, by taking recourse to such legal remedy, as available to them, in accordance with law hereinafter.

¶12Resultantly, instant proceedings are closed.

(Ranjan Sharma)

Judge September 28, 2026

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