STATE OF PUNJAB AND ORS. vs AJUDHIA NATH AND ANR.

The Supreme Court held that the demand for short-fall in still-head duty under the Punjab Excise Act is based on binding contractual terms and does not invoke the principle of natural justice regarding the right to be heard, as it pertains to payment due under the license conditions. The Court clarified that while a liquor vendor must be given an opportunity to be heard before license cancellation, this does not apply to mere payment demands. The appeals were allowed, overturning the High Court's decision that had granted relief to the licensee.