Penugonda Malleswara Rao At Mallikarjuna Rao vs. The State Of Andhra Pradesh

Held

The Court held that the writ petition is liable to be disposed of in terms of the orders passed in W.P.No.42643 of 2017. Accordingly, the Court directed Respondent No. 4 to release the petitioner's seized stocks of Black Jaggery and Alum/Crystal, which were seized in connection with FIR No. 219 of 2023 of Dachepalli Police Station dated November 29, 2023. This release was made conditional upon the petitioner executing a personal bond for a sum of Rs. 50,000/- with one surety in the like sum, to the satisfaction of the concerned authority. The Court clarified that this order does not preclude the authorities from proceeding further in the matter in accordance with law. No order as to costs was made. The ratio decidendi is that goods, like jaggery, which are not excisable articles and are considered agricultural produce, should be released upon fulfillment of certain conditions, even if seized in connection with other FIRs, provided the petitioner has valid registrations and licenses and the seizure is challenged on grounds of illegality and lack of jurisdiction.

Facts

The petitioner, engaged in the business of Jaggery and Alum with valid licenses and GST registration, filed a writ petition challenging the seizure of 150 bags of Black Jaggery (6,750 Kgs) and 110 bags of Alum/Crystal (4,950 Kgs) by Respondent No. 4. The seizure occurred on November 29, 2023, in connection with FIR No. 219 of 2023 of Dachepalli Police Station. The petitioner's stock was seized based on the confession of an accused involved in manufacturing illicit liquor, who allegedly implicated the petitioner's business. The petitioner contended that jaggery is an agricultural produce or bio-product, not requiring a license for sale as per G.O.Ms.No.1929 dated 27.12.2006 and Memo No.47802/Ex.III/1/2006-13 dated 20.12.2010, and is not an excisable article under the Andhra Pradesh Excise Act, 1968. The petitioner sought the release of the seized goods.

Key Issues

1. Whether the seizure of Black Jaggery and Alum/Crystal by Respondent No. 4 is illegal, considering the petitioner possesses valid licenses and GST registration, and the nature of jaggery as an agricultural produce not subject to excise restrictions under the Andhra Pradesh Excise Act, 1968 and relevant Government Orders? Petitioner's Arguments: The petitioner argued that jaggery is an agricultural produce or its bio-product, and therefore, no license is required for its purchase and sale, citing G.O.Ms.No.1929 dated 27.12.2006 and Memo No.47802/Ex.III/1/2006-13 dated 20.12.2010. They further contended that jaggery is not an excisable article as per the Andhra Pradesh Excise Act, 1968 and Government Orders, making the seizure illegal. The petitioner relied on previous High Court judgments in W.P.No.42643 of 2017 and W.P.No.9991 of 2018, which directed the release of seized jaggery under similar circumstances. Revenue/State's Arguments: The learned Government Pleaders appearing for the respondents did not dispute the submissions made by the learned counsel for the petitioner.