Case Note & Summary
The applicant, Kiritbhai Amichandbhai Patel, filed a Criminal Revision Application before the Gujarat High Court challenging an order of confiscation dated 10-11-2004 passed by respondent No.2 under Section 6-A of the Essential Commodities Act, 1955, confiscating 3,99,171 liters of pit oil valued at Rs. 37,72,166/- and 440 liters of spray oil valued at Rs. 5,060/-, totaling Rs. 37,77,226/-. The confiscation order was confirmed by the Special Judge (Essential Commodities), Fast Track Court No. 1, Patan, in Criminal Appeal No. 21 of 2004 vide judgment dated 28-9-2005. The applicant contended that the confiscation was illegal and without jurisdiction as the goods were not covered under the Solvent, Raffinate and Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 after its amendment in 2001. The learned advocate for the applicant submitted that the definition of 'solvent' in the Order was initially wide but was amended in 2001 to restrict it to specific items mentioned in the Schedule, and pit oil and spray oil were not included. The Central Government had informed all States about the amendment. The applicant argued that the confiscating authority and the appellate court failed to consider this amendment, rendering their orders illegal. The court heard the submissions and examined the record. The court noted that the definition of 'solvent' under the Order was amended in 2001, and the goods in question did not fall within the amended definition. The court held that since the goods were not covered under the Control Order, the confiscation under Section 6-A of the Essential Commodities Act was without jurisdiction. The appellate court's failure to consider the amendment made its order unsustainable. Consequently, the court allowed the revision application, quashed the confiscation order dated 10-11-2004 and the appellate order dated 28-9-2005, and directed the release of the confiscated stock to the applicant.
Headnote
A) Essential Commodities Act - Confiscation - Section 6-A - Scope - Confiscation under Section 6-A of the Essential Commodities Act, 1955 is permissible only if the goods are essential commodities as defined under the Act or covered under a Control Order issued thereunder - The goods must fall within the ambit of the relevant Control Order at the time of seizure - Held that if the goods are not covered under the Control Order, the confiscation order is without jurisdiction (Paras 4-5). B) Solvent, Raffinate and Slop Order - Definition of Solvent - Amendment - The Solvent, Raffinate and Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 initially had a wide definition of 'solvent' - However, by amendment in 2001, the definition was restricted to specific items mentioned in the Schedule - Pit oil and spray oil are not included in the amended definition - Held that the amendment excludes these items from the purview of the Order (Paras 3-4). C) Appellate Court - Failure to Consider Amendment - The appellate court failed to consider the 2001 amendment to the definition of 'solvent' while confirming the confiscation order - This renders the appellate order illegal and liable to be set aside - Held that the appellate court's order is unsustainable in law (Para 5).
Issue of Consideration
Whether the confiscation of pit oil and spray oil under Section 6-A of the Essential Commodities Act, 1955 read with the Solvent, Raffinate and Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 is valid after the 2001 amendment to the definition of 'solvent'.
Final Decision
The court allowed the Criminal Revision Application, quashed the confiscation order dated 10-11-2004 passed by respondent No.2 and the judgment and order dated 28-9-2005 passed by the Special Judge (Essential Commodities), Fast Track Court No. 1, Patan in Criminal Appeal No. 21 of 2004, and directed respondent No.2 to release the confiscated stock to the applicant.
Law Points
- Confiscation under Section 6-A of Essential Commodities Act
- 1955 requires the goods to be an essential commodity as defined under the Act or covered under a Control Order
- Amendment to definition of 'solvent' in Solvent
- Raffinate and Slop Order
- 2000 excludes pit oil and spray oil
- Appellate court's failure to consider amendment renders order illegal
