M/S Riga Sugar Co. Ltd vs The State Of Bihar And Ors
2021 Latest Caselaw 772 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.8948 of 2017
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M/s Riga Sugar Co. Ltd., Distillery Division, having registered office at 14 Netaji Subhash Road, Kolkata - 700001 and having Distillery Plant at Riga, District - Sitamarhi, Bihar through its Chief General Manager, Dr. Sukhbir Singh Mallic, Son of Shri Bijpal Singh, resident of Riga Sugar Co. Ltd., Riga, Sitamarhi.

... ... Petitioner/s

Versus

1. The State Of Bihar through the Principal Secretary, Excise and Prohibition, Government of Bihar, Patna.

2. The Principal Secretary, Excise and Prohibition, Government of Bihar, Patna.

3. The Excise Commissioner, Bihar, Patna.

4. The Collector, Muzaffarpur.

5. The Superintendent of Excise, Muzaffarpur.

6. The Superintendent of Excise, Araria.

... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s : Mr.Ashish Giri, Advocate For the Respondent/s : Mr. Vikash Kumar, SC 11 ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 09-02-2021

Petitioner has prayed for the following relief(s):

"i. To issue an appropriate writ, order, direction in the nature of certiorari for quashing the order dated 23.05.2017 passed by the Excise Commissioner, Bihar, Patna in Appeal Case No. 42 of 2015 by which the petitioner has been held guilty for supply of sub-standard liquor and has upheld the original penalty order Patna High Court CWJC No.8948 of 2017 dt.09-02-2021

dated 07.08.2015 passed by the Excise Commissioner, Bihar, Patna, by which the petitioner was demanded to pay Rs.3,82,48,914/- and has accordingly dismissed the appeal which was remanded by the Member, Board of Revenue vide its order dated 22.07.2016 (Annexure-15).

ii. To issue an appropriate writ, order, direction in the nature of certiorari for quashing the order dated 07.08.2015 bearing memo no. 2451 issued by the Excise Commissioner, Bihar, Patna by which in excise of power under Section 42(1)(g)(h)(i) of the erstwhile Bihar Excise Act, 1915, a penalty of Rs.3,82,48,914/- has been imposed upon the petitioner on the allegation of manufacture and supply of sub- standard liquor (Annexure-10).

iii. To issue an appropriate writ, order, direction in the nature of certiorari for quashing the letter dated 01.06.2017 issued by the Collector, Muzaffarpur by which in terms of the order

of 2015 the petitioner has been directed to deposit a sum of Rs.3,82,48,914/- (Annexure-

16).

iv. To hold and declare that there has been no supply of sub-standard liquor by the petitioner during the period in question and accordingly no loss has been caused to the government and thus no penalty could have been imposed in excise of power under Section 42 of the erstwhile Bihar & Excise Act, 1915.

Patna High Court CWJC No.8948 of 2017 dt.09-02-2021

v. To issue an appropriate writ, order, direction in the nature of mandamus directing the respondent authorities to permit the petitioner to operate its distillery situated at Riga without any hindrance.

vi. To issue appropriate interim/ex-parte interim order staying the operation of the impugned order of the Excise Commissioner dated 23.05.2017 passed in Appeal Case No. 42/2015 and also the consequential order of the Collector, Muzaffarpur bearing no. 514 dated 01.06.2017 and or the deposit of the amount in question be stayed for which the authorities be prevented from taking any coercive steps for recovery of the same or otherwise against the petitioner during the pendency of the present writ application.

Vii. To issue any other relief for which the petitioner is entitled for."

The short point which arises for consideration is as to

whether the authority passing the impugned order dated

23.05.2017, in Appeal Case No. 42 of 2015, was empowered

under the provisions of Bihar Excise Act, 1915 (hereinafter

referred to as the Act) to pass such an order or not.

It is not in dispute that the impugned order dated

23.05.2017 was passed by Excise Commissioner, Bihar, Patna in

Appeal Case No. 42 of 2015 (Annexure-15). Also, it is not in Patna High Court CWJC No.8948 of 2017 dt.09-02-2021

dispute that under the Statute, i.e. Section 42 of the Act, the

authority prescribed by the Government who granted the

licence, was the Collector and not the Commissioner. It is under

these circumstances, we are inclined to interfere and remand the

matter afresh to the authority prescribed, i.e. the Collector, who

had granted the licence.

Today, there is no dispute of the identity of such

authority.

As such, we quash the impugned order dated

23.05.2017 passed by Excise Commissioner, Bihar, Patna with

direction to the parties to appear before the Collector,

Muzaffapur on 22.02.2021, at 10:30 a.m.

Since the proceedings pertain to the year 2014-

2015, we expedite the process with a further direction to the

authority to positively conclude the proceedings on or before

31st of March, 2021.

Parties undertake to fully co-operate in the

proceedings.

Needless to add, all issues of fact and law are left

open to be raised by the parties and to be adjudicated by the

authority.

Petition stands disposed of with the aforesaid Patna High Court CWJC No.8948 of 2017 dt.09-02-2021

observations and directions.

Interlocutory application, if any, shall also stand

disposed of.

(Sanjay Karol, CJ)

( S. Kumar, J)

K.C.Jha/DKS-

AFR/NAFR
CAV DATE
Uploading Date          12.02.2021
Transmission Date