TaxTMI 
TaxTMI 
2022 (3) TMI 508
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....is the specific case of the petitioner that the petitioner has entered into a manufacturing agreement with the fourth respondent namely Premier Distilleries Private Limited which had allegedly indulged in removal of alcoholic beverages and violated the provisions of the Pondicherry Excise Act, 1970. 3.The learned Senior Counsel for the petitioner submits that the fourth respondent was merely a bottling unit engaged to manufacture goods for the petitioner on principal to principal basis and that the fourth respondent was not an authorized one to sell any of the products without the permission of the petitioner using the petitioner's essence and other raw materials of the petitioner which included ENA, holograms, stickers, bottles, etc. 4.The learned Senior Counsel for the petitioner submits that there is watertight agreement and secures the interest of the petitioner and that even if the fourth respondent indulges in evasion of duty under the aforesaid Act, the Officers enforcing the provisions of the aforesaid Act cannot seize goods which were lying with the fourth respondent for manufacturing purpose under the manufacturing agreement dated 31.12.2019. 5.The learned Se....
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....ttles with counterfeit holograms at Godown premises of Premier Distilleries Private Limited at 2 nd Cross , Sithankudi, Puducherry, Sl. No. Hologram Type No. of Boxes No. of Bottles 1. Counterfeit Hologram Cases 13 383 (iii). Abstract of Liquior bottles with counterfeit holograms at FL-1 retail shop premises of Premier Distilleries Private Limited at Anna Salai, Puducherry. Sl. No. Hologram Type No. of Cases No. of Bottles 1. Counterfeit Hologram Cases 50 1916 (iv) Total abstract of Liquor bottles seized from the licensed premises of Distillery, Godown and FL-1 retail shop of the M/s Premier Distilleries Private Limited, Puducherry. Sl. No. Place of Stock Verification No. of Cases/Boxes No. of Bottles 1. Premier Distillery Licensed Premises, Mangalam 40,186 15,36,830 2. FL-1 Shop, Anna Salai, Puducherry 50 1916 3. Godown, Premises at Sithankudi, Puducheery. 13 383 TOTAL 40249 15,39,129 9.It is further submitted that it is for the petitioner to file application for return of seized goods in Crime No.121/2020. It is submitted that the respondent file....
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....arned Additional Government Pleader for the official respondents submits that since the 4th respondent was found indulging in clandestine removal of the manufactured stock in violation of the provisions of the Pondicherry Excise Act, 1970, the stock finished goods and raw materials were seized under the provisions of the Pondicherry Excise Act, 1970. 13.It is submitted that two different complaints were filed. It is submitted that Crime No.121/2020 was filed under Sections 484, 486, 468, 471, 472, 474 and 420 IPC r/w Section 34 IPC and that the counterfeit holograms were seized by the Police and that the FIR registered by Mangalam Police Station was later transferred to CBCID, Police Department, Puducherry. 14.As far as the raw materials are concerned, it is submitted that a separate complaint was filed and FIR was registered on 23.06.2020 in Crime No.44/2020 under Sections 31(g), 34 & 35(1)(b) of the Pondicherry Excise Act, 1970 and that the Blending and Bottling tanks installed in the premises of the distillery were sealed. It is further submitted that the premises of the 4th respondent was also sealed. It is further submitted that the total quantity of 1,06,637.91 litres o....
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....trate, Puducherry, in Cr.M.P.No.4221/2020 in Crime No.121/2020, wherein the learned Judicial Magistrate-IV granted permission to confiscate the stocks kept at the distillery. As such the respondent Department has taken all possible efforts to dispose the stocks in accordance with the provisions of the Pondicherry Excise Act, 1970 and the rules made thereunder. As such, the allegations of the petitioner that the respondent has failed to take action in deciding his representations, dated 20.07.2020 and 22.10.2020, is baseless and therefore denied. 19.The learned Additional Government Pleader for the respondents 1 to 3 submits that the provisions of Cr.P.C has been made applicable for search and seizure under the provisions of the Pondicherry Excise Act, 1970. It is submitted that the procedures prescribed under Section 102 r/w 457 Cr.P.C were followed and therefore, the petitioner has to work out its remedy under the procedures prescribed in Cr.P.C. 20.The learned counsel for the private respondent viz., 4th respondent/contract manufacturer submits that the stock and raw materials including the ENA can be ascertained, if an Advocate Commissioner is appointed and after ascertain....
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....e Excise Department. 27.No separate quantity or inventory wise detail has been made. The official respondents have stated that the details of the brand for which the ENA and blends which were stored in the tanks, quantity of other raw materials like CAB, FMS, Grape Spirit, Essence, Caramel were not readily available. 28.If there was seizure of these raw materials, it had to be in accordance with the provisions of Criminal Procedure Code as is evident from section 54 of the Puducherry Excise Act, 1970. 29.Section 54 of the Pondicherry Excise Act, 1970 reads as under: ''Power of Excise officers in matters of investigation 54. (1) Any Excise Inspector or any Excise Officer not below such rank and within such specified area as the Government may, by notification, prescribe, may, as regards offences under Section 31, Section 32, Section 33, Section 35 or Section 36, exercise powers conferred on an office in charge of a police station by the provisions of the Code of Criminal Procedure, 1898: Provided that any such power shall be subject to such restrictions and modifications, if any, as the Government may prescribe. (2) For the purpos....
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....fected as otherwise a detailed report of such raw materials would have been prepared and filed by the Officer before the superior official under Section 56 of the Act. 37.It will be therefore useful to refer to some of the provisions of the Code of Criminal Procedure, 1973, as made applicable to the Pondicherry Excise Act, 1970. However, in the Pondicherry Excise Act, 1970, the power to effect seizure is with the Excise Office or the Inspector of Excise. Sections 102 and 457 of Cr.P.C. are reproduced below: Section 102 Section 457 Power of police officer to seize certain property. (1) Any police officer may seize any property which may be alleged or suspected to have been stolen, or which may be found under circumstances, which create suspicion of the Commission of any offence. (2) Such police officer, if subordinate to the officer in charge of a police station, shall forthwith report the seizure to that officer. (3) Every police officer acting under sub-section (1) shall forthwith report the seizure to the Magistrate having jurisdiction and where the property seized is such that it cannot be, conveniently transported to the court, he may give custody thereof to a....