Quashing of FIR under IPC where alleged conduct fell within the Punjab VAT Act, leaving fiscal proceedings open.

The High Court quashed the FIR and all consequential proceedings under the Indian Penal Code because the alleged conduct, if any, fell within Chapter X of the Punjab Value Added Tax Act, 2005. The petition for inherent relief succeeded on the basis that the special fiscal statute governed the alleged act rather than the general penal provisions invoked in the FIR, and the State accepted that position. The authorities were left free to proceed, if warranted, under the relevant provisions of the Punjab Value Added Tax Act, 2005.

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Issues: Whether the FIR and all subsequent proceedings under the Indian Penal Code were liable to be quashed on the ground that the alleged offence, if any, fell within Chapter X of the Punjab Value Added Tax Act, 2005.

Analysis: The petition invoked the inherent jurisdiction of the High Court for quashing of the FIR and consequential proceedings. The only substantive basis pressed was that the alleged act, assuming it constituted an offence, was covered by the special fiscal statute and not by the general penal provisions invoked in the FIR. The State accepted this position.

Conclusion: The FIR and all subsequent proceedings were quashed. The petition was allowed, leaving the authorities free to proceed, if warranted, under the relevant provisions of the Punjab Value Added Tax Act, 2005.

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