Usha Devi vs. The State Of Bihar

Held

The Court held that the petitioner is granted liberty to file an application for the release of the seized coal before the Special Court, Excise, Saran at Chapra. The Special Court is directed to release the seized coal in favor of the petitioner on usual terms and conditions imposed by the court for the release of seized articles. This direction is to be complied with within 30 days from the date of filing of such petition. The Court found that the case was instituted only on apprehension and suspicion that miscreants used to purchase coal for the preparation of illicit country-made liquor, and the seized coal was not liable for confiscation under Section 56 of the Excise Act. Therefore, the Special Court, Excise has jurisdiction to pass an order for the release of the seized coal. The ratio decidendi is that seized goods, not directly linked to an offense and not liable for confiscation, should be released by the appropriate court upon application, subject to usual conditions.

Facts

The petitioner, Usha Devi, proprietor of Yash Raj Enterprises, filed a writ petition seeking the release of coal seized in connection with Chapra Town Police Station Case No. 101 of 2020. The case was registered under Sections 420, 414, 34 of the Indian Penal Code and Section 30(C)(D) of the Bihar Prohibition and Excise Act. The informant alleged receiving secret information that the petitioner stored coal purchased by miscreants engaged in manufacturing illicit liquor, leading to the seizure of the coal. The petitioner contended that she possessed a valid GST number and tax invoices for the legally purchased coal, and no illicit liquor was recovered, thus no offense under the Excise Act was made out. The petitioner argued that the seized coal was not liable for confiscation under Section 56 of the Excise Act and that the case was based solely on apprehension.

Key Issues

1. Whether the seized coal, purchased legally by the petitioner with valid GST registration and invoices, can be seized and detained in connection with a case registered under the Indian Penal Code and the Bihar Prohibition and Excise Act, when no illicit liquor was recovered from the petitioner's possession or premises? (Question of law and fact, turning on Sections 420, 414, 34 IPC, Section 30(C)(D) and Section 56 of the Bihar Prohibition and Excise Act). Petitioner's arguments: The petitioner argued that she is a proprietor with a valid GST number and tax invoices for the coal, indicating legal purchase. She asserted that no illicit liquor was recovered, therefore no offense under the Excise Act is made out. The petitioner further contended that the seized coal is not liable for confiscation under Section 56 of the Excise Act and that the case was instituted merely on apprehension and suspicion. She also argued that the Special Court, Excise has jurisdiction to order the release of the seized coal. Revenue's arguments: The judgment records no specific arguments from the revenue or state respondents regarding the seizure of the coal.