APEA Section 23-A : Payment by the Corporation

Explanation using Example

Example 1: Monthly Payment of Privilege Fee by the Corporation

Introduction: The Andhra Pradesh Beverage Corporation Limited (APBCL) is granted the exclusive privilege to trade in Indian Made Foreign Liquor (IMFL) under the Andhra Pradesh Excise Act, 1968. In January, APBCL sells a significant volume of liquor, generating substantial revenue.

Application: According to Section 23-A of the Andhra Pradesh Excise Act, 1968, APBCL must pay the Privilege Fee to the Commissioner of Prohibition and Excise. This fee is calculated after deducting the corporation's expenses from the total revenue generated in January.

Outcome: By February, APBCL must ensure the Privilege Fee is paid to the Commissioner. Failure to comply may result in penalties or legal action under the Act's penalty provisions. Timely payment ensures compliance and avoids legal complications.

Conclusion: Compliance with Section 23-A is crucial for APBCL to maintain its trading privileges and avoid penalties. The corporation must manage its finances to ensure timely payment of the Privilege Fee.

Example 2: Delayed Payment and Legal Consequences

Introduction: In March, APBCL experiences administrative delays, leading to a late payment of the Privilege Fee for February's sales.

Application: Section 23-A mandates that the Privilege Fee be paid in the month following the sales. Due to the delay, APBCL risks non-compliance with the legal requirement.

Outcome: The Commissioner of Prohibition and Excise may impose fines or initiate legal proceedings against APBCL for failing to meet the payment deadline. This could also affect the corporation's reputation and its future trading privileges.

Conclusion: APBCL must implement efficient administrative processes to prevent delays. Understanding the legal consequences of non-compliance emphasizes the importance of adhering to Section 23-A's requirements.

Example 3: Adjusting for Special Circumstances

Introduction: Due to unforeseen circumstances, such as a natural disaster, APBCL's operations are disrupted, affecting its ability to calculate and pay the Privilege Fee on time.

Application: While Section 23-A does not explicitly provide exceptions for such events, APBCL may need to communicate with the Commissioner to explain the situation and seek an extension or adjustment.

Outcome: If the Commissioner acknowledges the special circumstances, APBCL might receive a temporary reprieve. However, this is at the discretion of the authorities, and APBCL must provide adequate documentation and justification.

Conclusion: Special circumstances require proactive communication with authorities. APBCL should maintain transparency and provide necessary documentation to seek leniency under Section 23-A.