High Court of Karnataka Dismisses State's Revision in Excise Act Case — Confiscation of Vehicle Set Aside for Lack of Notice to Owner. Appellate Court's Order Upheld as Principles of Natural Justice Require Notice Before Confiscation Under Karnataka Excise Act, 1965.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The State of Karnataka filed a revision petition under Section 397 read with Section 401 of the Code of Criminal Procedure, 1973, challenging the judgment and order dated 08.04.2011 passed by the Fast Track Court – II, Koppal, in Criminal Appeal No.31/2010. The appellate court had allowed the appeal filed by the respondent, V. V. Prasad, and set aside the order dated 27.05.2010 passed by the Authorised Officer (Excise Superintendent, Koppal) confiscating a Bolero vehicle bearing registration number KA-29/P-0969. The prosecution's case was that on 25.09.2007 at about 7:30 p.m., based on credible information, police from Town Police Station, Gangavathi, intercepted the Bolero vehicle near Kanakagiri road and found the occupants in illegal possession of 240 bottles of Raja Whisky (180 ml each) and 288 bottles of United Fine Whisky (180 ml each). The liquor was being transported without any valid license or permit, leading to the seizure of the vehicle and initiation of confiscation proceedings under the Karnataka Excise Act, 1965. The Authorised Officer passed an order confiscating the vehicle. The respondent, claiming to be the owner of the vehicle, filed an appeal before the Fast Track Court, which allowed the appeal on the ground that no notice was issued to the owner before passing the confiscation order, thereby violating principles of natural justice. The State, aggrieved by this appellate order, filed the present revision petition. The High Court heard the learned High Court Government Pleader for the petitioner-State. The respondent was served but remained unrepresented. The Court examined the records and noted that the appellate court had set aside the confiscation order solely on the ground that no notice was issued to the owner. The High Court found no illegality or irregularity in the appellate court's order, as the requirement of notice to the owner before confiscation is a fundamental principle of natural justice. Consequently, the revision petition was dismissed, and the order of the Fast Track Court was upheld.

Headnote

A) Criminal Procedure - Revision - Section 397 read with Section 401 Cr.P.C. - Maintainability - State challenged the appellate order setting aside confiscation of vehicle - High Court dismissed revision holding that the appellate court correctly set aside the confiscation order as no notice was issued to the owner before confiscation - Held that principles of natural justice require notice to the owner before confiscation (Paras 1-5).

B) Excise Law - Confiscation of Vehicle - Section 43A of Karnataka Excise Act, 1965 - Notice to Owner - Vehicle used for transporting illicit liquor was confiscated by the Authorised Officer without issuing notice to the owner - Appellate Court set aside confiscation - High Court upheld appellate order - Held that confiscation without notice to the owner is illegal and violative of principles of natural justice (Paras 3-5).

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Issue of Consideration

Whether the order of confiscation of a vehicle under the Karnataka Excise Act, 1965, passed without issuing notice to the owner, is sustainable in law.

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Final Decision

The revision petition is dismissed. The order dated 08.04.2011 passed by the Fast Track Court – II, Koppal, in Crl. A. No.31/2010 is upheld.

Law Points

  • Confiscation of vehicle under Karnataka Excise Act requires notice to owner
  • Natural justice principles
  • Section 397 read with Section 401 Cr.P.C.
  • Section 43A of Karnataka Excise Act
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Case Details

2018 LawText (KAR) (12) 27

CRL. R. P. NO. 2282 OF 2011

2018-12-04

Mohammad Nawaz

Raja Raghavendra Naik (H.C.G.P.)

The State of Karnataka

V. V. Prasad

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Nature of Litigation

Revision petition by State against appellate order setting aside confiscation of vehicle under Karnataka Excise Act

Remedy Sought

State sought to set aside the appellate order dated 08.04.2011 and restore the confiscation order dated 27.05.2010

Filing Reason

The appellate court set aside the confiscation order on the ground that no notice was issued to the owner of the vehicle

Previous Decisions

Authorised Officer (Excise Superintendent, Koppal) passed order dated 27.05.2010 confiscating Bolero vehicle; Fast Track Court – II, Koppal, in Crl. A. No.31/2010 allowed appeal and set aside confiscation order on 08.04.2011

Issues

Whether the order of confiscation passed without issuing notice to the owner is sustainable? Whether the appellate court was justified in setting aside the confiscation order?

Submissions/Arguments

Learned H.C.G.P. argued for the petitioner-State; no specific arguments recorded in judgment Respondent served but unrepresented

Ratio Decidendi

Confiscation of a vehicle under the Karnataka Excise Act, 1965, without issuing notice to the owner is illegal and violative of principles of natural justice. The appellate court was correct in setting aside such confiscation order.

Judgment Excerpts

The State is in Revision challenging the judgment and order dated 08.04.2011 passed by the Fast Track Court – II at Koppal, in Crl. A. No.31/2010 wherein the learned Judge allowed the appeal filed by the respondent herein and set aside the order dated 27.05.2010 passed by the Authorised Officer i.e., Excise Superintendent, Koppal, in file No.EX/DTCR/33/2007-08 confiscating the seized Bolero vehicle bearing No.KA-29/P-0969. The appellate Court has set aside the order of confiscation on the ground that no notice was issued to the owner of the vehicle before passing the order of confiscation. I do not find any illegality or irregularity in the order passed by the appellate Court.

Procedural History

On 25.09.2007, police intercepted a Bolero vehicle and seized illicit liquor. The Authorised Officer under the Karnataka Excise Act passed an order of confiscation on 27.05.2010. The owner filed an appeal before the Fast Track Court – II, Koppal, which allowed the appeal on 08.04.2011, setting aside the confiscation order. The State filed a revision petition under Section 397 read with Section 401 Cr.P.C. before the High Court of Karnataka, Dharwad Bench, which was dismissed on 04.12.2018.

Acts & Sections

  • Code of Criminal Procedure, 1973 (Cr.P.C.): 397, 401
  • Karnataka Excise Act, 1965: 43A
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