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As per case facts, the Petitioner's licenses for manufacturing Indian Made Foreign Spirit and Country Liquor were canceled following a surprise inspection. The Petitioner challenged the cancellation, arguing that the
...inspection team's constitution was not in accordance with the Himachal Pradesh Excise Act, 2011, and relevant notifications. Additionally, parallel proceedings were initiated by different authorities, and the Collector, who had conducted an initial inquiry, also made recommendations for cancellation and actively participated in the adjudication before the Commissioner, raising concerns about procedural fairness and impartiality. The question arose whether the inspection and the subsequent cancellation of licenses were legally valid, considering the alleged non-compliance with statutory requirements for the inspection team's composition and the procedural irregularities during the adjudication process. Finally, the High Court found that the inspection team's constitution was not in consonance with the applicable Act and notification. It ruled that the Commissioner's cancellation Order lacked an independent mind and was marred by procedural breaches, particularly the Collector's prejudicial involvement. The High Court quashed the cancellation Order, directing the Commissioner to adjudicate the matter afresh, disregarding the Collector's prior recommendations and pleadings, and emphasizing a fair opportunity for the Petitioner and strict adherence to statutory procedures for all future inspections.
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