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Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.

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1974 (2) TMI 92

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.... Bombay and have a further licence to distribute the drugs through the motor van throughout the territory of the state of Maharashtra. Accordingly, their motor van started filled with drugs and reached the Vidarbha area. The petitioners booked certain drugs for which they have already a licence to distribute, by lorry to Yeotmal. The idea was that the motor van, which was touring the Vidarbha area, should reach Yeotmal by about the time when the goods were due to arrive and the person in charge of the motor van would collect the drugs so booked from the lorry and distribute them as per instructions given by the firm. But unfortunately the motor van was delayed by about three days and one of the partners of the petitioner-firm who was moving with the van, went ahead of Yeotmal, released the goods from the transport operator and temporarily kept them in the godown of a local drugs dealer. The intention was to load the van with those drugs and distribute the drugs as permitted by the licence. In the appeal in this Court, these facts have been found as pleaded by the accused persons. However, it is held that the temporary deposit of the goods in the godown of a local drugs dealer am....

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....er and distributor-and has a licence for his Bombay shop in Form 20B and another in Form 21B, one for drugs specified in C and C (1) Schedules and the other for other drugs (Ex. 37 and 38). The firm has one more licence issued under Rule 61(2) in Form 21B authorising it to sell, stock or exhibit for sale or distribute on the premises situated at through Station Vagan No. MHR 1279 in the state of Maharashtra the following categories of drugs specified in schedule C and C(1) to the Drug Rules, 1945 : Categories of drugs: for items of Schedule C(1) drugs not requiring cold Storage 2. This licence shall be in force for two years from the date of issue of this licence: 3. This licence is subject to the conditions stated below and to the Provisions of the Drugs Act, 1940 and the rules thereunder. The question is whether the act of the appellant in temporarily storing drugs, not for immediate sale there but intended for ultimate sale in various parts of the State, is contrary to Section 18(c) and punishable under Section 27(b)? Even if it is, can Ex. 39, which permitted stocking and selling in the specified vehicle of the accused, cover the brief interval of storage between ta....

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....he rules, however, are a little confusing . 6. Rule 2(b) defines 'Form' as a form set forth in Schedule A and does not profess to be illustrative and that Schedule applies 6 forms under Rule 61 (1) and (2) and none for peripatetic wholesale distributors who may transport to and stock in central places and radiate from there to remote retailers. The licence Ex. 39 for the accused's vehicle is an improvised innovation without the law but prompted by practical sense. The Sub-rules of Rs. 61 state that licences there under shall be issued in forms 20A, B and C, 21A, B and C. Rule 62 leaves no (sic)rixm for variations to suit exigencies although its proviso envisages licences for itinerant vendors for an area and Rule 62A takes cognisance of travelling agents and itinerant vendors who are required to take licences in Form 21A. But it is a glaring deficiency that while the rules visualise wholesale distribution licences the forms do not spell out licences for mobile vans or distribution depots so essential for a wholesale distribution system. There is no doubt that if a scientific system of over-seeing wholesale distribution and a viable scheme of protected distribution is to be devis....

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....If godowns, temporary stores and depots can remain unlicensed, they escape official attention and can deteriorate into foci of dubious or deceptive drugs harmful to society. Every place where storage for sale is made must be licensed. That is the plain meaning of Section 18(c) in fulfilment of the clear purpose, the sensitive defence of the sick. 9. The only surviving issue is whether the medicines in this case were stocked for sale in the house of Jaswani at Yootmal. Admittedly, they were kept not for sale in those premises. Admittedly, they were meant for sale eventually to rural retailers elsewhere. If so, were they stocked for sale ? Either contention has some claims to acceptance but what must tilt the balance is the purpose of the statute, its potential frustration and judicial avoidance of the mischief by a construction whereby the means of licensing meet the ends of ensuring pure and potent remedies for the people. This liberty with language is sanctified by great judges and textbooks. Maxwell(1) instructs us in these words: There is no doubt that 'the office of the Judge is, to make such construction as will suppress the mischief, and advance the remedy, and to suppr....