Court Reduces Penalty to 30% of Insured Value, Sets Aside Additional 3% Penalty in Bihar Prohibition and Excise Act Case
In a significant ruling, the Patna High Court has modified the penalty imposed in a case involving the confiscation of a vehicle transporting foreign liquor under the Bihar Prohibition and Excise Act, 2016. The Division Bench comprising Justices Rajeev Ranjan Prasad and Sourendra Pandey heard the case of Sikandar Ajam v. State of Bihar, resulting in a decision that reduces the financial burden on the petitioner.
The case centered around the confiscation of a vehicle leased through Zoomcar Host Services, which was intercepted while transporting 317.88 liters of foreign liquor. The District Magistrate-cum-Collector of Darbhanga had initially ordered the vehicle's release upon payment of 50% of its insured value, plus an additional 3% penalty.
The petitioner, Sikandar Ajam, challenged this order, arguing that the penalties were exaggerated and lacked legal sanction. He cited previous similar cases where the imposition of an additional 3% penalty was deemed illegal by the court.
In its judgment, the High Court acknowledged the petitioner's claim as the vehicle owner and noted that he was not an accused in the liquor transportation case. The court found the 50% penalty excessive and reduced it to 30% of the insured value, aligning with precedents set in other cases. Importantly, the court also set aside the additional 3% penalty, citing a lack of legal basis for its imposition.
This decision underscores the court's commitment to ensuring penalties are just and legally sanctioned, providing relief to individuals who lease vehicles and find themselves entangled in legal issues through no fault of their own.
Bottom Line:
Bihar Prohibition and Excise Act, 2016 - Confiscation of vehicle transporting foreign liquor - Imposition of penalty modified to 30% of insured value - Imposition of additional 3% over and above penalty amount held to be illegal and set aside.
Statutory provision(s): Bihar Prohibition and Excise Act, 2016, Bihar Prohibition and Excise Rules, 2021.
Sikandar Ajam v. State of Bihar, (Patna)(DB) : Law Finder Doc Id # 2833604
