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2025 Supreme(Jhk) 1300
IN THE HIGH COURT OF JHARKHAND AT RANCHI
M.S. RAMACHANDRA RAO, C.J., DEEPAK ROSHAN, J.
M/s. R.K. & Company Manpower Private Limited - Appellant
Versus
The State of Jharkhand, through the Secretary, Department of Excise and Prohibition - Respondent
W.P.(C) No.426 of 2024, W.P.(C) No. 661 of 2025, W.P.(C) No.860 of 2025, W.P.(C) No. 6786 of 2024
Decided on : 26-03-2025
Advocate Appeared:
For the Appellant : Mr. Indrajit Sinha, Adv, Mr. Arpan Mishra, Adv, Ms. Niharika Nidhi, Adv
For the Respondent: Mr. Rajiv Ranjan, AG, Mr. Piyush Chitresh, A.C. to A.G, Mr. Raunak Sahay, Adv
Penalties cannot be imposed by authorities without a prior show cause notice detailing the basis for such action, ensuring adherence to principles of natural justice.
Headnote:(A) Excise Act - Principles of Natural Justice - Demand for penalties raised by authorities must be preceded by a show cause notice detailing the basis and material for such demand. (Paras 2, 3)
(B) Writ Jurisdiction - Writ petitions allowed due to procedural impropriety, ensuring fairness in administrative actions. (Paras 2, 3)
Facts of the case:
The petitioners challenged penalties imposed by the Excise Department for vagueness and lack of prior notice. The court found merit in their claims, emphasizing the necessity of due process.
Findings of Court:
The impugned orders were set aside; show cause notices to be issued for clarity and fairness.
Issues: Whether the imposition of penalties without a show cause notice is lawful.
Ratio Decidendi: Vital procedural safeguards must be adhered to; penalties cannot be levied in absence of prior notice regarding their basis, reinforcing the principles of natural justice.
Result: Writ petitions allowed.
| Table of Content |
|---|
| 1. no show cause notice for penalty. (Para 2) |
| 2. court's decision to allow writ petitions. (Para 3) |
| 3. procedure for response to show cause notice. (Para 4) |
JUDGMENT :
Heard the counsel for the petitioners and the Advocate General for all the respondents.
2. The issue in these writ petitions is with regard to certain demand raised as a penalty by the respondents from the petitioners which have been assailed on the ground that it is not preceded by any show cause notice indicating the basis for such levy and also on the ground of vagueness. We find force in the said submissions.
3. In these circumstances, the writ petitions are allowed, the impugned orders passed by the respondents against each of the petitioners are set aside.
The Excise Commissioner-cum-Managing Director of Jharkhand State Beverages Corporation Limited shall issue a show cause notice to each of the petitioners giving the basis for the levy of the penalty and also the material on the basis of which such penalty is being sought to be levied on each of the petitioners.
4. On receipt of such show cause notice each of the petitioners shall submit a reply to the Excise Commissioner-cum-Managing Director of Jharkhand State Beverages Corporation Limited within two weeks of such receipt of show cause notice.
A personal hearing shall be provided by the Excise Commissioner-cum-Managing Director of Jharkhand State Beverages Corporation Limited to each of the petitioners and then a reasoned order in accordance with law shall be passed by the Excise Commissioner-cum-Managing Director of Jharkhand State Beverages Corporation Limited and communicated to the petitioners.
Till the Excise Commissioner-cum-Managing Director of Jharkhand State Beverages Corporation Limited passes such an order, the bank guarantees given by the petitioners shall be kept alive.
