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2026 Supreme(Pat) 91

IN THE HIGH COURT OF JUDICATURE AT PATNA
MOHIT KUMAR SHAH, ARUN KUMAR JHA, JJ.
Shambhu Nath Rai Son of Hari Krishna Rai - Petitioners
Versus
The State of Bihar through the Principal Secretary, Excise Department, Government of Bihar, Patna – Respondent
Civil Writ Jurisdiction Case No.333 of 2026
Decided On : 09-03-2026

Advocates:
Advocate Appeared:
For the Petitioners:Mr.Javed Aslam, Advocate
For the Respondents: Mr. K.P. Gupta, Mrs. Deepanjali Gupta

IMPORTANT POINT
Penalty for vehicle release in excise seizure cases must consider meagre liquor quantity, lack of owner involvement, and insurance value; full insured amount exorbitant without regular illicit use evidence.

Headnote:

Bihar Prohibition and Excise Act, 2016 – Section 30(a) & Rules 12A (2) of the Bihar Prohibition and Excise (Amendment) Rules, 2023 and Rule 12A (4) of Bihar Prohibition and Excise (Amendment) Rules, 2022 – Confiscation of vehicle carrying the illicit liquor – Penalty of Rs. 3,80,000/- imposed for release of the vehicle which is equivalent to the insured value of the vehicle – The petitioner assailing the order on the ground of the penalty amount being exorbitant and unreasonable – under 12A(2) of the Rules, 2023, while imposing penalty the quantity of the intoxicant recovered as also the insurance value of the vehicle is required to be considered, which has not been considered in the present case – Further, in terms of Rule 12A(4) of the Amendment Rules, 2022, while imposing fine, the Collector or the officer authorized by him shall have due regard to the economic status of the individual, nature of his involvement in the crime and the quantum of intoxicant recovered – No such exercise has been done in the present case while passing the impugned order – Meager quantity of illicit liquor recovered – Penalty imposed is exorbitant and unreasonable and quashed – A sum of Rs. 10,000/- considered as a reasonable amount – petitioner directed to deposit Rs. 10,000/- within 15 days whereupon the vehicle ordered to be released. (Paras 7, 8, 9)

Table of Content
1. vehicle seized with meagre illicit liquor quantity. (Para 1 , 2)
2. penalty exorbitant; ignores quantity, depreciation, owner non-involvement. (Para 3)
3. rules mandate considering quantity, owner involvement, economic status. (Para 5 , 6 , 7 , 8)
4. exorbitant penalty quashed; reduced to reasonable rs.10,000 for release. (Para 9 , 10 , 11)

JUDGMENT :

MOHIT KUMAR SHAH, J.

The present writ petition has been filed for quashing the order dated 04.06.2025 passed by the Sub-Divisional Magistrate, Gopalganj Sadar in Excise Confiscation Case No. 264 of 2025 (arising out of Gopalpur P.S. Case No. 40 of 2025) whereby and whereunder the Sub-Divisional Magistrate, Gopalganj has fixed a sum equivalent to the insured value of the vehicle in question i.e. a sum of Rs. 3,80,000/- as penalty amount for the purposes of release of the vehicle in question.

2. The brief facts of the case as per the First Information Report bearing Gopalpur P.S. Case No. 40 of 2025 dated 15.02.2025, registered under Section 30 (a) of the Bihar Prohibition and Excise Act, 2016 (hereinafter referred to as the ‘Act, 2016’), against two persons, namely Indrajeet Patel and Ramnath Gupta is that on 15.02.2025 at about 05:30 in the evening while the police personnel were checking vehicles for suspected illicit liquor, at about 07:15 p.m. in the evening one four wheeler vehicle was coming briskly from Uttar Pradesh, whereafter the said vehicle i.e. Tata Nexon car bearing Registration No. UP53DJ9899, Chassis No. MAT627165JLK44037, Engine No. 1.SCRAIL01JRYW38352 was apprehended and checked, leading to recovery of 375 ml. of illicit liquor and one 500 ml. Kingfisher beer can. The said occurrence led to institution of the aforesaid Gopalpur P.S. Case No. 40 of 2025.

3. The Ld. Counsel for the petitioner submits that the confiscating authority i.e. the Sub-Divisional Magistrate, Gopalganj by the impugned order dated 04.06.2025 passed in Excise Confiscation Case No. 264 of 2025 has though directed for release of the vehicle in terms of Rule 12A(2) of the Bihar Prohibition and Excise (Amendment) Rules, 2023 (hereinafter referred to as the ‘Rules, 2023) on payment of the insured value of the vehicle i.e. a sum of Rs. 3,80,000/-, however the same is exorbitant and unreasonable inasmuch as the quantity of liquor recovered from the said vehicle is meagre. It is further submitted that the vehicle was purchased by the petitioner on 25.10.2019 i.e. about six years back, hence the depreciated value of the vehicle in question ought to have been considered. It is next submitted that a bare perusal of the Rule 12A(2) of the Rules, 2023 would show that the Collector/his authorized officer while imposing penalty should have due regard to the quantity of intoxicant recovered, involvement of the vehicle owner and the latest insurance value of the vehicle, however in the present case all the said factors have not been considered inasmuch as the owner of the vehicle i.e. the petitioner herein was not apprehended from the spot and there is no averment in the counter affidavit to the effect that the vehicle in question was being regularly used for ferrying illicit liquor. The Ld. Counsel for the petitioner has further referred to paragraph no. 9 of the writ petition to submit that the vehicle of the petitioner was being driven by his driver Indrajeet Patel and the said driver alongwith one Ramnath Gupta were going to attend a marriage ceremony, however on the way the said vehicle was apprehended by the police and on account of recovery of illicit liquor the same was seized, nonetheless as far as the petitioner is concerned, he is having no complicity in the alleged occurrence. 4. Per contra, the Ld Counsel appearing for the respondent- State has submitted that the impugned order dated 04.06.2025 has been passed in accordance with Rule 12A(2) of the Rules, 2023, nonetheless the Ld. Counsel for the respondent-State has not been able to deny the fact that the amount of penalty assessed by

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