STATE OF BIHAR vs NIRMAL KUMAR GUPTA

The Supreme Court examined the interpretation of the Bihar Excise (Settlement of Licences for retail sale of country/spiced country liquor) Rules, 2004, particularly Rule 17(kha), regarding the advance security deposit for excise licenses. The Court held that despite the respondent's delayed payment in three installments, the Collector's recommendation for approval was valid, and the subsequent issuance of the license was lawful. The Court upheld the High Court's decision, affirming that the demand raised for the period of non-utilization was not justified under the circumstances.