Confiscation of goods for technical regulatory breaches is impermissible without evidence of black-marketing and must strictly adhere to the principles of natural justice, including the right to a fair hearing and evidence evaluation.

JUDGMENT

1) By way of revision applications under Section 397 (section 438 of BNSS) read with Section 401 (Section 442 of BNSS) of the Code of Criminal Procedure, 1973 (for short “CrPC”), the applicant – State has prayed for quashing and setting aside the judgment dated 13.10.2011 passed by learned Additional Sessions Judge, Bhavnagar, in Criminal Revision Application No.33/2009, whereby, learned Addl. Sessions Judge has been pleased to allow the revision filed by the respondent by quashing and setting aside the order dated 02.04.2009 passed by Collector, Bhavnagar, confiscating seized stock of Rs.1,85,000/-.

2) Heard Mr.Rohan Raval, learned APP for the applicant – State and though rule was issued, advocate Notice on behalf of the respondent is unserved.

3) Brief facts of the case are that, the respondent was engaged in the business of selling of light diesel oil and during checking carried out on 20/03/2008 by the authority, the respondent was found with certain irregularities like

(i) licence was obtained under Solvent Refrinate and Slop (Purchase, Sale Stock and Prohibition of use in Automobiles) Order, 2000 whereby the storage capacity for tank No.1 was 12 KL of furnace oil and for tank No.2 was 12 KL of LDO, whereas the licence holder was found with 19,000 liters stock of furnace and fuel oil in different six tanks without any licence

(ii) the display board did not contain the price and stock of the day on which checking was carried out and thereby committed breach of Section 3 of the Gujarat Essential Commodities (Regulation) Act, 1977

(iii) upon verifying the stock on the spot, the stock register of furnace oil and fuel oil were made different where they are the same product and the closing of the stock register is upto 07/03/2008 for fuel oil and 01/03/2008 for furnace oil. Hence, the stock register were not updated on the date on which checking was carried out and thereby committed breach of Section 9 of the Gujarat Essential Commodities (Regulation) Act, 1977

(iv) during the course of checking, in the plot No.22 stock of 1600 litter (per barrel) of lubricating oil was found illegally without having any licence and during the course of checking also, it has been found that business of the said firm was also running at Alang Shriji Scrape Yard at Plot No.5 where the stock of lubricating oil of 4400 liters (22 barrel) were found and in this regard no licence was obtained and the record of selling and purchasing was not updated. As per the Lubricating Oil and Greases (Processing Supply and Distribution) Order, 1987 to do the business of lubricating oil, licence is required to be obtained from the Center of District Industry and hence by not obtaining licence, committed breach of Section 3 of the said order

(v) on the spot of business, the measurement and calibration of the used tank was not done and thereby committed breach of condition of the licence

(vi) as the stock of furnace/fuel oil was found access than the physical so there are possibility to believe that accounts are not maintained accordingly and thereby committed breach of Section 9 of the said Order, 2000.

4) Thus, upon found the above referred irregularities, the respondent committed breach of Sections 3 and 9 of the Gujarat Essential Commodities (Control and Regulation of Business) Order, 1977 and also committed breach of condition of the Solvent Refrin