STATE OF KARNATAKA AND ORS. vs V.S. NARAYANA SWAMY

The Supreme Court upheld the Karnataka High Court's ruling that Rule 8(1) of the Karnataka Excise (Sale of Indian & Foreign Liquors) Rules, 1968, which imposed a licence fee for retail vending of liquors, was beyond the legislative competence granted by Section 23(d) of the Mysore Excise Act, 1965. The Court clarified that while Section 23(d) allows for the imposition of fees on licences for the sale of excisable articles, Rule 8(1) improperly extended this to include fees based on the location of the retail shop. Consequently, the appeal was dismissed without merit, and no costs were awarded.