Gujarat High Court Cancels FIR Against Royal Stag Producer for Failing to Provide Excise Escort.
The Gujarat High Court has dismissed a First Information Report (FIR) against Pernod Richard, a wine and spirits producer, for failing to have an excise escort while transporting liquor in Gujarat. The court noted that state transport rules clearly require the transporter to arrange and pay for the escort. This decision came during a hearing of an application under Section 482 of the Code of Criminal Procedure, 1973, which sought to quash the FIR filed under various laws, including the Indian Penal Code, 1860, and the Gujarat Prohibition Act, 1949. Pernod Richard argued that according to the Gujarat Through Transport Rules, the transporter is responsible for the escort costs, and their agreement with the logistics company made it the latter’s responsibility to arrange and cover these charges, with reimbursement to follow.
Justice Devan M. Desai, presiding over the case, stated that the transporter was at fault for not securing the required excise escort when entering Gujarat, and thus, the spirits company should not be held responsible. The court concluded that the allegations in the FIR, if taken at face value, do not support the claimed offense, and the likelihood of a conviction is low. Continuing the criminal case against the accused would be a waste of the court’s time. Advocate Tarak Damani represented Pernod Richard India, while Assistant Public Prosecutor Rohan Shah represented the State of Gujarat.
The Petitioner is a wine and spirits company that sells brands like Chivas Regal, Ballantines, Jacobs Creek, Blenders Pride, and Royal Stag. They had a contract with a logistics company to transport 800 cases of Royal Stag Whiskey. During transport, the truck overturned, damaging the liquor. The truck entered Gujarat without the required escort and without notifying the Gujarat Excise Department, allegedly to avoid paying taxes. The logistics company had an escort order from the Deputy Superintendent of the State Excise Department and a pass for exporting Indian Made Foreign Liquor. The spirits company also had a transit pass under the Gujarat Value Added Tax Act, 2003.
According to the Gujarat Through Transport Rules, no consignment can be transported by road through Gujarat without an excise escort. The transporter must apply to the Local Prohibition and Excise Officer where the consignment first enters Gujarat by road. The Gujarat Prohibition Act states that it is an offense for anyone with a license, permit, pass, or authorization to intentionally violate any rules or orders under this Act. The Court noted that if the FIR does not show any intentional act or omission by the spirits company, they cannot be considered offenders as stated in the FIR. It pointed out that the transporter was the one who failed to obtain the necessary excise escort when entering Gujarat.
The Court canceled the FIR against the spirits company for violations of Sections 177, 184, and 134 of the Motor Vehicles Act, 1988, Section 77(B) of the Gujarat Prohibition Act, 1949, and Rule-10 of the Gujarat Through Transport Rules, 1966.
Cause Title: Pernod Richard India Private Limited v. State Of Gujarat [R/Special Criminal Application (Quashing) No. 5469 of 2018]
