Bench differs on excise evasion controversy

CHANDIGARH, April 27: A division bench of the Punjab and Haryana High Court has differed on the controversy of excise evasion by bonded warehouse licencees in export of Indian Made Foreign Liquor IMFL to other states. The matter related to the excise and penalty slapped on licencees by the governments of Haryana and Punjab on detection of excise evasion, besides cancellation of licences.

While Justice J. L. Gupta held that there was no prime facie against the licencees, it was observed that there was a definite lapse on the part of the concerned authorities in construing the relevant provisions properly and in keeping a check on the documents submitted for permission to export the liquor. It was ruled by Justice Gupta that no duty paid excise permit had been submitted by the license and only pass fee had been paid in case of petitioner Kanshi Ram and Madan Lal which showed that no excise duty was levied in Mizoram on liquor and the lapse on the part of the authorities in misreading the document was being put on the petitioners.

One the contrary, Justice Iqbal Singh, however, chose to differ with Justice Gupta while holding that the petitioners had forged permits just to remove liquor from bonded warehouses in order to deprive the state government of excise duty running into lakhs of rupees. He observed that the dishonesty of the petitioners was further apparent from the fact that cheques had been shown to have been received in payment.