Facts of the Case

The petitioner, Shaik Rafeeq Ahmed, proprietor of Royal Traders, was engaged in the lawful business of tobacco products under a valid GST registration, valid waybills, necessary licences, and payment of applicable taxes. Despite the Supreme Court having granted an interim stay on the Telangana Government's Tobacco Prohibition Notification dated 07.01.2022, the local police authorities allegedly continued to interfere with and harass the petitioner's business activities.

The petitioner therefore approached the Telangana High Court under Article 226 of the Constitution of India seeking protection against unlawful interference by the police authorities.

 Issues Involved

  1. Whether police authorities can interfere with the lawful business activities of a licensed tobacco trader despite the Supreme Court's interim stay on the State Government's prohibition notification.
  2. Whether the petitioner was entitled to protection under Article 226 against arbitrary interference by law enforcement authorities.
  3. Whether the earlier judgment passed in W.P. No.34806 of 2022 and batch was applicable to the present case.

 Petitioner's Arguments

  • The petitioner submitted that he was carrying on business legally under a valid GST registration, valid licences and valid transport documents.
  • It was argued that the Telangana Government's prohibition notification dated 07.01.2022 had already been stayed by the Hon'ble Supreme Court in connected Special Leave Petitions.
  • Despite the subsistence of the Supreme Court's interim order, the respondents continued to interfere with the petitioner's lawful business operations.
  • Such interference was arbitrary, illegal and violative of the principles of natural justice and therefore liable to be restrained by the High Court.

 Respondent's Arguments

  • The learned Assistant Government Pleader submitted that the controversy involved in the present writ petition was already covered by the earlier judgment dated 21.09.2022 passed by the Telangana High Court in W.P. No.34806 of 2022 & batch.
  • Both parties agreed that the present matter could be disposed of in terms of the earlier decision.

 Court Order / Findings

The Telangana High Court observed that the issue stood squarely covered by its earlier judgment in W.P. No.34806 of 2022 & batch.

The Court noted that:

  • The Supreme Court had stayed the operation of the Telangana Government's Tobacco Prohibition Notification dated 07.01.2022.
  • During the subsistence of the Supreme Court's interim orders, the respondents were not entitled to interfere with the petitioner's lawful business activities.
  • The Director General of Police had also issued instructions to all concerned officers, and any action contrary to those directions would be viewed seriously.

Accordingly, the High Court disposed of the writ petition by directing the respondents not to interfere with the petitioner's business activities for so long as the Supreme Court's interim orders remained in force. No order as to costs was passed.

 Important Clarification

  • A lawful trader possessing valid GST registration, licences and transport documents cannot ordinarily be subjected to police interference when the relevant prohibition notification has been stayed by the Supreme Court.
  • The judgment reiterates that authorities are bound by interim orders of the Supreme Court.
  • The decision follows the earlier precedent in W.P. No.34806 of 2022 & batch, ensuring consistency in judicial protection granted to similarly situated traders.
  • The Court also emphasized compliance with the Director General of Police's circular directing officers not to act contrary to the Supreme Court's interim protection.

 Sections / Provisions Involved

  • Article 226 of the Constitution of India
  • Section 151 of the Code of Civil Procedure, 1908 (Interlocutory Application)
  • Cigarettes and Other Tobacco Products Act, 2003 (COTPA, 2003)
  • Telangana Government Notification No. 501/FSS-1/2022 dated 07.01.2022
  • GST Registration and statutory compliance (factual background)

Link to Download the Order

https://mytaxexpert.co.in/uploads/1785138855_2039compressed.pdf

 Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.