Deo Prasad vs. The Zonal Manager, East Central Railway

Facts

The petitioner, Deo Prasad, held a license for a book stall. He challenged an order dated 25.11.2019 by the Divisional Commercial Manager, Danapur, which enhanced his annual license fee from Rs. 3300/- to Rs. 69,000/- per annum plus GST. He also challenged a subsequent letter dated 06.02.2020 from the same authority, threatening him to deposit the enhanced fee and arrears totaling Rs. 140,980/- (Rs. 69,000 + 18% GST) or face legal action. The petitioner sought to quash these orders and requested a stay on them, offering to deposit the license fee at the old rate.

Held

The petitioner sought permission to withdraw the present writ petition. The Court granted this permission, reserving the liberty for the original license holder to approach the authority for redressal of grievances in accordance with law. Consequently, the petition was disposed of with the aforesaid liberty. The Court did not delve into the merits of the petitioner's challenge to the enhanced license fee or the subsequent demand. The interlocutory applications, if any, were also disposed of.

Key Issues

1. Whether the impugned order dated 25.11.2019, enhancing the license fee for the petitioner's book stall from Rs. 3300/- per annum to Rs. 69,000/- per annum plus GST, is arbitrary and liable to be quashed? 2. Whether the impugned letter dated 06.02.2020, threatening legal action for non-payment of the enhanced license fee and arrears, is sustainable in law? Petitioner's Contentions: The petitioner argued that the enhancement of the license fee was excessive and arbitrary, as it was a significant jump from the previous fee. He was prepared to deposit the license fee but at the old rate. Respondent's Contentions: The judgment does not record any specific contentions from the respondents (East Central Railway authorities).