In Brief
Gwalior Distilleries, holding a D-1 licence, applied for a CS-1 licence to manufacture and supply country spirit in Madhya Pradesh. The Excise Commissioner rejected the application because the company did not participate in the government's tender process. The High Court upheld the rejection, holding that area allotment via tender was a precondition for the CS-1 licence. The Supreme Court allowed the appeal, holding that the Excise Act and Rules do not require tender participation or prior area allotment for CS-1 grant. While the State has exclusive rights in liquor trade, it must respect Article 14 equality when granting privileges—it cannot arbitrarily exclude similarly situated applicants without statutory justification.
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