G. C. BHARUKA, J. ( 1 ) PETITIONERS ARE ENGAGED IN THE BUSINESS OF EITHER SELLING denatured SPIRIT OR THE SAME IS REQUIRED BY THEM FOR manufacturing THE DENATURED SPIRITUOUS PREPARATIONS. ACCORDINGLY, AS REQUIRED UNDER THE PROVISIONS OF THE KARNATAKA excise (DENATURED SPIRIT AND DENATURED SPIRITUOUS preparations) RULES, 1967 (IN SHORT, 'the RULES'), THEY HOLD ANY one OF THE LICENCES IN FORM NOS. DL-3, DL-5, DL-6 AND DL-9 AS prescribed UNDER RULES 9 (1), 11 (1), 12 (1) AND 15 (1) OF THE RULES respectively. BY NOTIFICATION NO. G. S. R. 61, DATED 21-2-1974 THE state GOVERNMENT HAD PRESCRIBED THE LICENCE FEE OF RS. 100/- FOR dl-2, RS. 50/- FOR DL-3, RS. 100/- FOR DL-5, RS. 200/- FOR DL-6 AND rs. 50 FOR DL-9 BY INCORPORATING THE SAME IN THE AFORESAID RULES. SUBSEQUENTLY BY THE IMPUGNED NOTIFICATION NO. FD PES 92, dated 21-11-1992, BY AMENDING THE SAID RULES, THE LICENCE FEE HAS been SUBSTANTIALLY ENHANCED IN THE FOLLOWING MANNER: Licence in Form No. Original Licence Fee Enhanced Licence Fee DL-3 Rs. 50/- Rs. 10,000/- DL-5 Rs. 100/- Rs. 05,000/- DL-6 Rs. 200/- Rs. 05,000/- DL-9 Rs. 50/- Rs. 02,000/- ( 2 ) APART FROM ENHANCING THE LICENCE FEE AS NOTICED ABOVE, A NEW RULE 17-A WAS ALSO INSERTED, WHICH READS AS UNDER:"17-A. ADDITIONAL FEE. ALCOHOL BASED INDUSTRIES POSSESS- ing LICENCE IN THE FORM NO. DL-2, DL-3, DL-5, DL-6 OR dl-9 HAVING LICENCED CAPACITY OF MORE THAN 50,000 LITRES OF spirit IN A YEAR SHALL PAY AN ADDITIONAL LICENCE FEE OF ONE rupee PER LITRE BEFORE ISSUE OF LICENCE". ( 3 ) PETITIONERS HEREIN HAVE CHALLENGED THE SAID ENHANCEMENT AS ALSO THE INSERTION OF RULE 17-A ON THE GROUND THAT THE LEVYING of SUCH FEES IS WITHOUT ANY QUID PRO QUO AND, S SUCH IS constitutionally INVALID; AND, ACCORDINGLY THE IMPUGNED notification AND THE CONSEQUENTIAL DEMAND NOTICES BASED THEREON against THE PETITIONERS BE QUASHED. ( 4 ) RESPONDENTS HAVE SOUGHT TO JUSTIFY THE IMPUGNED ENHANCEMENTS IN LICENCE FEES ON VIRTUALLY THE SAME GROUNDS AS IN the CASE OF M/s. DUPHEX CHEMICALS V STATE OF KARNATAKA AND others1, WHICH HAS BEEN DISPOSED OF BY ME THIS DAY. ( 5 ) THEREFORE, FOR THE REASONS SET OUT IN DETAIL IN THE JUDGMENT OF THE AFORESAID WRIT PETITION (WRIT PETITION NO. 3639 OF 1994), the IMPUGNED ENHANCEMENTS ALSO CANNOT BE SUSTAINED. ( 5 ) THEREFORE, FOR THE REASONS SET OUT IN DETAIL IN THE JUDGMENT OF THE AFORESAID WRIT PETITION (WRIT PETITION NO. 3639 OF 1994), the IMPUGNED ENHANCEMENTS ALSO CANNOT BE SUSTAINED. THE notification IMPUGNED AND THE CONSEQUENTIAL DEMANDS ARE accordingly QUASHED TO THE SAID EXTENT ONLY. NO COSTS. --- *** --- .