Facts of the Case

M/S Suraj Freight Carrier Pvt. Ltd., a Delhi-based carrier company holding a valid GST registration, had hired a truck (bearing a Punjab registration number) from a Ludhiana-based transport company to carry goods to Patna in April 2022.

En route, the truck was seized by police at Faizabad, Uttar Pradesh, on the ground that it was found carrying 2,575 litres of illicit liquor in 8,160 bottles, leading to registration of an FIR under Sections 419, 420, 467, 468, 471 IPC and Sections 60, 63 and 72 of the U.P. Excise Act, 1910, against the truck driver and another person.

The petitioner, as the freight-carrier company that had hired the vehicle for legitimate transport (relying on its GST registration, lorry-hire challan, loading slip and e-way bill for the consignment), sought release of its goods and the truck.

Its release application before the District Magistrate, Ayodhya was rejected on 19 September 2022; a subsequent application under Section 457 Cr.P.C. before the Chief Judicial Magistrate, Faizabad was also rejected; and a Criminal Revision against that order was dismissed by the Sessions Judge, Faizabad, on the ground that Cr.P.C. provisions would not apply in the face of a Special Act (the U.P. Excise Act).

The petitioner then approached the Allahabad High Court under Article 227 of the Constitution.

Issues Involved

  1. Whether the pendency of confiscation proceedings under the U.P. Excise Act barred release of the seized truck and goods under Sections 451/457 Cr.P.C.
  2. Whether continued retention of the vehicle in an open police yard, causing it to deteriorate, was justified pending final disposal.

Petitioner's Arguments

  • As a freight carrier, the petitioner had no connection with the seized liquor and had transported goods for a client relying on documents including its GST registration, e-way bill and lorry-hire challan, establishing bona fide carrier operations.
  • Long confinement of vehicles at police stations causes irreversible deterioration; citing Sunderbhai Ambalal Desai v. State of Gujarat, the petitioner argued for prompt release subject to appropriate safeguards.
  • The petitioner was ready to comply with any conditions the Court imposed for release of the goods.

Respondent's Arguments

  • The District Magistrate and judicial authorities had passed justified orders with sound reasons, and no interference was warranted; the petition deserved dismissal with exemplary costs.

Court Order / Findings

  • The Court held, following its own and Supreme Court precedent (Sunderbhai Ambalal Desai and others), that pendency of confiscation proceedings under Section 72 of the U.P. Excise Act is not a bar to release of a vehicle needed for trial, and that keeping seized articles at police stations indefinitely serves no purpose and causes needless damage.
  • It found the impugned orders had failed to apply these settled principles and were not legally sustainable.
  • The petition under Article 227 was allowed; the orders of the Sessions Judge (25 July 2022) and the District Magistrate (19 September 2022) were set aside, and the matter was remitted to the District Magistrate to decide the petitioner's release application afresh, within three months, in accordance with law.

Important Clarification

This is a criminal-procedure ruling on release of seized property under the U.P. Excise Act and Sections 451/457 Cr.P.C. — it does not decide any point of GST law. The petitioner's GST registration was cited only as evidence of its legitimate carrier business, supporting its claim to have no connection with the smuggled liquor.

Sections Involved

  • U.P. Excise Act, 1910 — Sections 60, 63 and 72, governing confiscation of vehicles and goods used in illicit liquor transport.
  • Code of Criminal Procedure, 1973 — Sections 451 and 457, governing custody and release of seized property, the central provisions applied.
  • Indian Penal Code, 1860 — Sections 419, 420, 467, 468, 471, the offences alleged in the FIR.

Decision – In Favour of

Decided in favour of the petitioner, M/S Suraj Freight Carrier Pvt. Ltd. — the impugned orders refusing release were set aside and the matter remitted for a fresh decision within three months.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench
  • Neutral Citation: 2023:AHC-LKO:34788
  • Case No.: Matters Under Article 227 No. 5110 of 2022
  • Coram: Justice Shamim Ahmed
  • Date of Order: 11 May 2023

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