4 October, 2019
On August 2, 2019, CCI dismissed the allegations made by United Breweries Limited (‘Informant’) against the Commissioner, Department of Excise, Entertainment and Luxury Tax, Government of National Capital Territory of Delhi (‘Opposite Party’) alleging contravention of the provisions of Sections 3(4) and 4 of the Act. [1]
The allegations pertain to setting up of a discount price control mechanism by the Opposite Party on the L-1 licensees of wholesale supply of Indian Made Foreign Liquor (‘IMFL’) in violation of Section 3(4)(e) of the Act. The Informant further alleged imposition of unfair and discriminatory terms and conditions imposed on the L-1 licensees by the Opposite Party.
CCI observed that being a department of Government of National Capital Territory of Delhi, the Opposite Party’s responsibilities to, inter alia, regulate liquor and narcotics, are in discharge of its statutory functions and therefore, fall within the realm of public policy and do not fall within the ambit of activities included under the definition of an ‘enterprise’ under the provisions of the Act. CCI further noted that the case does not involve existence of a ‘vertical agreement’ under Section 3(4) of the Act. Accordingly, CCI dismissed the allegations.
[1] Case No. 22 of 2019.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
