Penalty imposition must comply with statutory provisions; unauthorized penalties for vehicle seizure exceed legal authority and are impermissible.

(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)

Date : 11-12-2025 Heard learned counsel for the petitioner and learned SC-10 for the State.

2. The petitioner in this case is seeking setting aside of the part of the order dated 23.01.2024 passed by the confiscating authority by which the confiscating authority has imposed a penalty of 50% of the insured value which comes to Rs. 3,45,776/- for release of the vehicle in question. It is further ordered that a sum of Rs. 10,373/- shall also be imposed as penalty of security and maintenance of the vehicle in question.

It is submitted that not only the quantum of penalty is highly excessive keeping in view the quantity of liquors being 23.250 liters, the competent authority has exceeded his power to impose an another kind of penalty which is not authorized by law.

3. Learned counsel for the petitioner submits that a new Rule 12(A) was inserted after Rule 12 of the Bihar Prohibition and Excise Rules , 2021 vide an amendment Rule published in Bihar Gazette Extraordinary No. 181 dated 05.04.2022. Earlier under sub-rule (2) of Rule 12A it was provided that the penalty shall be 50% of the latest insured value of vehicle/conveyance. However, vide Bihar Prohibition and Excise (Amendment) Rules, 2023 published in Bihar Gazette Extraordinary No. 449 dated 31.05.2023 sub-rule (2) of Rule 12A was substituted. The newly substituted sub-rule (2) of Rule 12A provides for amount of penalty which shall be decided by the Collector or the officer authorized by him. It is provided that while imposing the penalty due regards shall be given to the quantity of intoxicant recovered, involvement of the vehicle owner and the latest insurance value of the vehicle. In no case, the penalty should be less than 10% of the insured value of the vehicle and more than Rs. 5 lakhs.

4. It is submitted that sub-rule (2) of Rule 12A nowhere provides for imposition of penalty in the name of security and maintenance of the vehicle, therefore the Additional Collector-cum-Additional District Magistrate, Nalanda could not have taken upon himself to impose penalty in the name of security and maintenance of the vehicle.

5. It is further submitted that the competent authority seems to have ignored the substituted sub-rule (2) of Rule 12A and has proceeded to pass the impugned order on the basis of sub-rule (2) of Rule 12A which existed prior to the Amendment Rules, 2023. The competent authority has exceeded his power under the Rules and imposed a further penalty on account of security and maintenance. This kind of penalty is not sanctioned by law.

6. Learned counsel for the State has after going through the rules failed to point out any such provision. It is not contested that there is no provision in the Rules to impose penalty on account of security and maintenance of vehicles under seizure.

7. We find force in the submissions of learned counsel for the petitioner. We have noticed from the impugned order that the confiscating authority has though mentioned the amended provision but it has been wrongly recorded that there is a provision for imposition of penalty on account of security and maintenance of the vehicle. The competent authority cannot be allowed to unduly enrich State exchequer by imposing this kind of penalty which is not sanctioned by law. In all fairness the competent authority must find out the total amount realized so far by him in the name of penalty on account of security and maintenance from the vehicle owner and steps be taken to refund them.

8. In the circumstances, we set aside the impugned order of confiscation and the subsequent orders of the appellate authority and the revisional authority as contained in Annexure-

2, Annexure-3 and Annexure-4 respectively.

9. The matter is remitted to the confiscating authority to take a fresh view of the matter in Confiscation (Excise) Case No. 195 of 2023 and pass an appropriate order thereon within a period of one month from the date of receipt/production of a copy of th