Dipak Misra, J.
Mahesh Kumar Ramniklal
vs
District Excise Officer, Excise
Decided On : 17 November, 1997
EXCISE - Madhya Pradesh Excise Act, 1915 - Sections 9, 10, 11, 12, 62(2)(d) - Madhya Pradesh Mahua Rules, 1959 - Rules 4, 13, 16, 19 - 'No Objection Certificate' for transport of Mahua flowers - Validity - Conditions for grant of pass for import, export or transport of intoxicants - Authority to regulate transportation of Mahua flowers within the State.
Fact of the Case:
Petitioners, registered as traders and commission agents, were engaged in the export of Mahua flowers to other States. They obtained necessary documents, including a pass for export of Mahua flowers, from the authorities in Orissa. However, during transit through Madhya Pradesh, their vehicles were detained by the Excise authorities for not having a 'No Objection Certificate' from the competent authority of Madhya Pradesh. The petitioners challenged the detention and imposition of penalty, contending that they had complied with the requirements of a circular issued by the Commissioner of Excise, Madhya Pradesh, dated 5-4-1974, which was in accordance with Section 12 of the Madhya Pradesh Excise Act, 1915.
Finding of the Court:
The Court held that the State Government had the authority to regulate the transport of Mahua flowers within the territory of the State under Sections 9, 10, 11, and 12 of the Madhya Pradesh Excise Act, 1915, and Rules 4, 13, 16, and 19 of the Madhya Pradesh Mahua Rules, 1959. The circular issued by the Commissioner of Excise, requiring a 'No Objection Certificate' for the transport of Mahua flowers through Madhya Pradesh, was valid and within the powers conferred by Section 12 of the Act. The Court distinguished the case of Rajkumar v. District Excise Officer, relied upon by the petitioners, on the ground that in that case there was no violation of the relevant rules, whereas in the present case, the petitioners had failed to obtain the required 'No Objection Certificate'.
Issues: 1. Whether the State Government had the authority to regulate the transport of Mahua flowers within the territory of the State? 2. Whether the circular issued by the Commissioner of Excise, requiring a 'No Objection Certificate' for the transport of Mahua flowers through Madhya Pradesh, was valid? 3. Whether the petitioners were entitled to a declaration that they could transport Mahua flowers without a 'No Objection Certificate' if they had complied with the requirements of the circular dated 5-4-1974?
Ratio Decidendi: 1. The Court held that the State Government had the authority to regulate the transport of Mahua flowers within the territory of the State under Sections 9, 10, 11, and 12 of the Madhya Pradesh Excise Act, 1915, and Rules 4, 13, 16, and 19 of the Madhya Pradesh Mahua Rules, 1959. 2. The Court held that the circular issued by the Commissioner of Excise, requiring a 'No Objection Certificate' for the transport of Mahua flowers through Madhya Pradesh, was valid and within the powers conferred by Section 12 of the Act. 3. The Court held that the petitioners were not entitled to a declaration that they could transport Mahua flowers without a 'No Objection Certificate' if they had complied with the requirements of the circular dated 5-4-1974, as the circular was superseded by the subsequent circular requiring a 'No Objection Certificate'.
Final Decision: The Court dismissed the writ petitions filed by the petitioners, upholding the validity of the circular requiring a 'No Objection Certificate' for the transport of Mahua flowers through Madhya Pradesh.
Dipak Misra, J.
1. The factual backdrop, the relief claimed and the questions of law being similar, the three writ applications, for the sake of convenience and clarity, were heard analogously and are disposed of by this common judgment. For better appreciation, the factual matrix in Writ Petition No. 4022/94 is exposited.
2. Invoking the extra-ordinary jurisdiction of this Court under Articles 226 and 227 of the Constitution of India the petitioners in the aforesaid writ petition have prayed for issuance of a writ in the nature of certiorari for quashing of 'Panchnama' (Annexure P/9) and the order imposing penalty/composition fees dated 18-11-1994 (Annexure P/10) and for direction for refund of the amount involved in the composition fee to the petitioners; for a declaration that the vehicles carrying necessary documents as specified in the memo dated 5-4-1974 by the Commissioner of Excise, Madhya Pradesh should neither be detained nor subjected to composition fee although the said vehicles are not accompanied by "No Objection Certificate"; and for a further direction in the nature of mandamus to be issued to the Excise Authorities for not obstructing interstate trade in Mahua flowers on the pretext of non-production of "No Objection Certificate" from the District Excise Authority by the exporter of the other State during transit of goods, and for issuance of any other writ, order or direction as deemed fit and proper in the facts and circumstances of the case.
3. The facts which have been uncurtained by the petitioners are that the petitioners Nos. 1 to 4 are registered partnership firms while petitioners Nos. 5 to 8 are proprietary firms. They are registered as traders and commission agents and are holders of licences granted to them under Rule 12 of the Orissa Excise (Mahua flowers) Rules, 1976. They are engaged in export of Mahua flowers to other States in India. The petitioner No. 1 entered into an agreement with one G. S. Bavankar, a resident of Dhanpwada, District Nagpur in the State of Maharashtra for commission sale and transport of Mahua flowers. Copies of the import permits issued by the Superintendent, State Excise, Nagpur, Maharashtra State authorising import of Mahua flowers have been brought on record. The petitioner No. 1 applied for pass for export of Mahua flowers under Rule 10 of the Orissa Excise (Mahua flowers) Rules, 1976, which was duly issued by the Collector, Nawapada, Orissa permitting transport of the specified quantity of Mahua flowers. The petitioner No. 1 deposited sales tax, Krishi Upaj Mandi fees and marketing fees in respect of the specified quantity of Mahua flowers intended to be exported to the buyers in the District of Nagpur. He also applied to the competent authority of the Forest Department of Orissa for transport permit for export of forest produce in respect of above transaction. The necessary permits were issued in his favour by the Forest Department. It is alleged that the said goods were entrusted to M/s Shri Ram Road Carrier, a transporter. On 17-11-1994 Mahua flowers were loaded in truck No. MP-26-B/5286 and MP-23-B/7392 at Kharier Road, Orissa and relevant documents were handed over to the drivers of the respective trucks. The aforesaid trucks carrying Mahua flowers entered into the State of M. P. on 17-11-1994 and at the check post Tembhari, Baghahara Range, District Raipur, the trucks were inspected and endorsement was made on the reverse of the transport permits. During the transit, the trucks were checked on various check posts and officers at the check posts inspected the trucks and contents therein and endorsed that they had been checked. At Patekohra check post in the District of Rajnandgaon the Excise Sub-Inspector checked the vehicles and found that though the trucks were carrying all the necessary documents, they did not have 'No Objection Certificate' granted by the competent authority of Madhya Pradesh. Being of this view he detained the trucks and seized the docume
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