CHAKRAVARTHY AND CO Vs. COMMISSIONER OF CIVIL SUPPLIES

JUDGEMENT

(1.) Petitioner is a firm carrying on business in Madras. On 4-1-1988 the Vigilance Authority of A.P. got information that the petitioner-firm was indulging in business in groundnut oil in the State of A.P. against the provisions of the law and transporting the said groundnut oil to Maharastra State clandestinely. Lorry bearing registration No.AEE 1269 which was allegedly transporting the said material was intercepted at Adilabad town which is the end-district of Andhra Pradesh. It was found carrying 95 quintals of groundnut oil. One person named Venkatanarsimham, who was a clerk serving in petitioner-firm, was found travelling with the lorry. He produced the Way Bill No.221165 and credit bill No.452 of 2-1-1988. The authorities detained the said lorry since it was suspected that the groundnut oil was not loaded at Madras as was alleged and, that the groundnut oil business was being done within Andhra Pradesh. As a result, further enquiry was caused by a visit to Madras and the books of account and stock registers maintained by the petitioner-firm were gone into. They did not reflect any transaction of sale of 95 quintals of groundnut oil which was allegedly covered by the way bill and credit bill produced by the clerk at Adilabad. The quadruplicate way bill was found kept blank and triplicate credit bill was issued in respect of "Bajra" and was not for groundnut oil. Further enquiries were made and it was found that the vehicle in question had not passed through the last checkpost of State of Tamil Nadu or the first checkpost of A.P. either on 2nd or on 3rd January, 1988. As a result, a case was booked against the petitioner-firm under Section 7 of the Essential Commodities Act, 1955 (hereinafter referred to as the 'Act') and a report under Section 6-A of the Act was filed before the Collector, Adilabad. After necessary enquiry, the Collector by his proceedings No.CS6/57/88 dated 10-5-1988 ordered confiscation of the entire seized stock of 95 quintals of groundnut oil to the Government on the ground of contravention of Clause 3 of A.P. Scheduled Commodities Dealers (L&D) Order, 1982. An appeal was preferred against the said order under Section 6(C) of the Act to the Additional Commissioner of Civil Supplies, Hyderabad. The appeal was dismissed by affirming the order of the Collector by G.O.Ms.No.467, Food and Agriculture, Civil Supplies (IV) Department, dated 22-12-1993.

(2.) Aggrieved by the order in the appeal referred above, the present writ petition has been filed. It is contended by the learned Counsel for the petitioner that there was no application of mind by the authorities concerned in passing the impugned order of confiscation. It is further stated that the petitioner has never done business in the State of Andhra Pradesh and the conclusion reached to that effect is without any basis. The lorry carrying the petitioner's goods was detained on 2-1-1988 in Tamil Nadu by the Assistant Commercial Tax Officer at Madhavaram Check Post. Detention notice was available and was produced before the Collector in the enquiry under Section 6A of the Act. But the same was rejected without any good grounds. The order of confiscation is based on statements which were recorded behind the back of the petitioner and therefore, the said enquiry is vitiated.

(3.) The learned Government Pleader has supported the orders passed by filing a counter.