SC stays HC order on enquiry against excise dept officials over ethanol seizure
Mumbai: The Supreme Court on Friday stayed a Bombay high court order directing the state government to inquire into the role of excise department officials in the seizure of pure ethanol in the city in September.
The stay was issued while the court was hearing a special leave petition filed by Laboratory Solutions India, an export firm, which contended that the high court judgement was pronounced without seeking formal replies or listening to the other side. It also pointed out that the case related to illegal trade and transport of controlled substances and pleaded that the FIR against the company not be quashed.
The case originates from around 58,000 litre of undenatured ethanol (ethyl alcohol) worth ₹95 lakh, which was seized by officials at the Nhava Sheva port in September 2023. It was alleged that the chemical was imported into the country falsely claiming that it was meant for laboratory use, so that it attracted a customs duty of 10% instead of the 150% levied on imports for commercial purposes.
Subsequently, a team of excise officials intercepted the importer K Raj and Company transporting the seized ethanol in trucks, which were seized. An FIR was also registered against the company’s proprietor Manohar Tolani and his accomplices, alleging the state government had lost about ₹56 lakh due to mis-declaration of the consignment.
“The driver of the offending vehicle was not in possession of any license or permission to transport ethyl alcohol in the state of Maharashtra. Ethyl alcohol can be used for liquor production and there is a mandatory provision of separate licenses for possession, use and sale of ethyl alcohol as per the Bombay Rectified Spirit Rules, 1951,” the FIR registered on December 12, 2023 stated.
K Raj and Co then approached the Bombay high court. On December 19, the court ordered the additional chief secretary to conduct an enquiry into the high-handedness of state excise department officials. “Any highhanded and illegal approach on the part of such officials, infringing the fundamental rights of the citizens is required to be enquired and taken to the logical conclusion by holding an appropriate inquiry as the law would mandate,” the high court said, ordering that the seized ethanol be released soon.
On Friday, the Supreme Court not only stayed the inquiry against excise department officials but also asked the company to return the seized property back to the excise department as it was part of an ongoing investigation. But the counsel for K Raj and Company said that much of the goods had already been sold. The next hearing in the case is scheduled for January 30.
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