IMPORTANT POINT
The respondent was purchasing oil seeds & edible oils and in view of clauses 2(g) and 2(f) of U.P. Oil-seeds & Oil-seeds Products Control Order, 1966 and Pulses Edible Oil-seeds and Edible Oil (Storage Control) Order, 1977 respectively, he is a dealer under respective orders and since he had no licence he is liable to be prosecuted according to law.

ORDER

This appeal by special leave has been placed before us by a reference. The facts are not in dispute. The appellant- State has filed an F.I.R. with allegations as under :

"It is submitted that Modi Paints and Varnish Works, manufactures Varnish and Paints at Modinagar. This firm had been buying linseed oil and other edible oils in large quantities for quite some time, and had been storing the same and utilising it for the manufacture of paints and varnish. This industrial unit had been buying and storing the linseed oil and other edible oils, and in this respect the said industrial unit has not obtained any licence.

The said industrial unit had given an application for obtaining a licence in respect of their business for the purpose of said oils for utilising the same in paints and varnish but their application was rejected. Subsequent to that also, the said industrial unit kept purchasing, storing and utilising the said oils and kept manufacturing said selling paints and varnish. Earlier also this firm had not made available its records concerning stock of bills.

To-day on 4.12.1985 in the evening at about 3.30 p.m. myself Abdul Qadir, Senior Marketing Inspector, Modinagar under the direction of Sri P.K. Upadhayaya, Addl. District Magistrate [Supply] Ghaziabad along with Sri Mohan Singh, District Supply Officer, Ghaziabad, Sri Rameshwar Dayal, Supply Inspector Modinagar, Sri S.K. Mishra, Marketing Inspector, Sri S.K. Singh, Marketing Inspector, Sri Anil Kumar Srivastava, Marketing Inspector, Modinagar, Sri J.R. Joshi, Sub-Inspector, Sri Samai Singh, Constable No. 56, Sri Sukhbir Singh, Head Constable No. 53, Police Station Modinagar etc. inspected the oilstored in the oil tankers of Modi Paints and Varnish Works, Modinagar. To verify four tanks oil stored in them the oils stated by the party, three samples each were taken from every tank total 27 samples and sealed on the spot in the presence of the representatives of the firm Sri Kailash Chandra, Store Clerk and Sri O.P. Sharma, Factory Manager, the stock register pertaining to the year 1985-86 consisting of 389 pages serially numbered was taken into custody after the used pages signed by me and the said Kailash Chandra. The stock of stored oil was inspected on the basis of the stock register and the following quantities of oil was found stored in the tanks :

1. Soyabean oil 843 Qtls. and 57 kgs.

2. Castor oil 8147 Qtls.and 45 kgs.

3. Refined Soyabean oil 32 Qtls. & 31 kgs.

The sample fard was prepared of one sample each from the collected samples and after taking the signature of every one it was handed over to the store clerk Sri Kailash Chandra. The stock register pertaining to the year 1984-85 was taken into custody and according to it on 1.11.1985 they had in their stock 2000 kiloliters of linseed oil stored with them. According to the oil register taken into custody, the aforesaid unit had purchased the refines soyabean oil, soyabean oil and linseed oil, had stored the same, utilised the same for manufacturing of varnish and paints and sold the said Paints and Varnish. The said oil comes in the category of edible oils because soyabean oil and refined soyabean oil are such oils in which the food can be cooked. In this way the said unit has utilised the edible oils in the manufacture of paints and varnish in illegal manner and without obtaining any licence.

In this way the said unit and the owner of the said unit [Modi Industrial Unit] Sri Kailash Chandra, Store Clerk, Om Prakash Sharma, Factory Manager and Modi Paints and Varnish Works, Modinagar have violated the clause 4 of the U.P. Oil Seeds and Oilseeds Products         Control order 1966 [as amended upto date] Government Order 1284/XXIX-E-C-L-112[US]/77 dated 8.3.1977 which is published in the U.P. Gazette dated 8th March 1977 and G.O. No. 4500/XXIX-Section-8-22 Oil/82 dated 29.10.1982 and Clauses 2, 3 and 6 of Pulses Edible Oil Seed and Edible Oil [Storage Control] Order 1977 [as amended upto dat