GOVERNMENT OF MAHARASHTRA vs M/S. DEOKAR'S DISTILLERY

The Supreme Court ruled that the State of Maharashtra is authorized under Section 58A of the Bombay Prohibition Act, 1949 to charge liquor licensees for the cost of supervision by government staff. The Court held that the recovery of supervision charges can be made retrospectively based on the revised pay scales established under the Maharashtra Civil Services (Revised Pay) Rules, 1998, and that such charges are lawful under Article 162 of the Constitution. The Court affirmed the validity of demand notices issued for differential amounts due to pay scale revisions.