SHRIPAD TALAULIKAR Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THESE criminal revision applications are directed against the Order dated 26-10-2007 of the learned Special Judge, Panaji, by which charge has been ordered to be framed against the accused under Sections 420 I. P. C. and Section 13 (2) r/w Section 13 (12) (d) of the Prevention of Corruption Act, 1988 r/w Section 120-B I. P. C. (They have been filed by A-2 to A-4 in Special Case No. 2 of 2003 ).

(2.) THE gravamen of the charge against the said accused is that they in furtherance of a criminal conspiracy obtained pecuniary advantage in the sum of rs. 92,43,684. 08 which was the duty payable on "blue Stratos After Shave lotion" at 100% advalorem for the period from 1-4-1989 to 11-3-1991 which was manufactured by M/s. PJM Pharmaceuticals on loan licence from M/s. Colfax laboratories of which A-4/krishna N. Lawande and A-3/eric Bosco Menezes were the Director and Managing Director, respectively. In the hierarchy of the excise Department, the Department is headed by an Excise Commissioner and below him there is an Assistant Commissioner, Superintendent of Excise, Head clerk and an U. D. C. At the relevant time, Shri Lalmalsawma was the commissioner of Excise who took the controversial decisions on 21-9-1989 that the said "blue Stratos After Shave Lotion" being a toilet preparation should be charged to excise duty at 100% advalorem but thereafter on 12-10-1989 approved the proposal to levy duty at Rs. 10/-per proof litre after the maximum chargeable price was indicated inclusive of the said duty of Rs. 10/-per proof litre. He was not prosecuted as no sanction to prosecute him could be obtained from the Central government and it is otherwise submitted that the Central Government has proposed some other action to be taken as against him. Shri S. V. Bhadri was the then Assistant Commissioner of Excise but he was not prosecuted as an accused because he expired. A-1/shri Moducora B. N. Desai was the Superintendent of excise who had communicated the said decision dated 29-1-1985 that 100% advalorem duty was payable on the said "blue Stratos After Shave Lotion". He has not challenged the said impugned Order dated 26-10-2007. Shri Florencio cota was the Head Clerk and he is cited as prosecution witness. Shri Govind suryaji Nachinolkar, the Excise Inspector who communicated the second decision by letter dated 12/10/1989 is also stated to have expired. A-2/shri Shripad talaulikar was the U. D. C at the relevant time.

(3.) AS can be seen from the impugned Order, M/s. PJM pharmaceuticals Ltd. is a sister concern of M/s. Colfax Laboratories Ltd. After some correspondence, M/s PJM Pharmaceuticals got a license to manufacture the said "blue Stratos After Shave Lotion" from the Drugs Controller in the premises of M/s. Colfax Laboratories and the Drugs Controller had not given license to manufacture the same as a medicinal product. The learned Special Judge has also stated that when the application dated 2-2-1989 from M/s. PJM Pharmaceuticals came to the Commissioner of Excise for no objection certificate to manufacture the said lotion in the premises of M/s. Colfax Laboratories the position which was clearly understood was that the said lotion would be a toilet or cosmetic product and the duty on which would be payable at 100% advalorem and this was communicated by letter dated 21-9-1989. The other reasons for ordering the framing of charge are found in paras 8 and 9 of the impugned Order.