2023 (4) TMI 819 - HC - GST

Seizure of goods alongwith vehicle - loaded coal was transported by the trucks with the connivance of the truck owners and the coal mafia from Meghalaya - allegation of smuggling coal to different states - HELD THAT - This Court, in a catena of decisions, consistently gave a note of caution that inherent power of quashing a criminal proceeding should be exercised very sparingly and with circumspection and that too in the rarest of rare cases. This Court also held that the High Court will not be justified in embarking upon an inquiry as to the reliability or genuineness or otherwise of the allegations made in the F.I.R. or the complaint and that the extra-ordinary or inherent powers do not confer an arbitrary jurisdiction on the court to act according to its whims and caprice. The petitioner is alleged with an offence of evading payment of taxes to the Government by smuggling coal to different states - This is an offence against the society at large. The document submitted by the petitioner does not even substantiate his averments. There appears to be no justified ground to invoke the inherent jurisdiction of 482 Cr.P.C. - this criminal petition stands disposed of.

Summary

Issues Involved:
The issues involved in the judgment include quashing of FIR under Sections 120(B)/379/420 of the Indian Penal Code (IPC) based on allegations of theft of coal, evasion of taxes, and abuse of power by police officials.

Details of the Judgment:

Quashing of FIR:
The petitioner filed an application under Section 482 Cr.P.C. seeking to quash the FIR registered against him for allegedly being involved in the theft of coal and evasion of taxes. The FIR was lodged based on a Naka checking operation where several trucks loaded with coal were stopped, and the drivers failed to produce legal documents for the coal's transportation.

Petitioner's Submission:
The petitioner, a businessman, claimed that he purchased coal legally for transportation to Bihar. He provided documents such as tax invoices, E-way bills, and coal purchasing documents to prove the legality of his actions. The petitioner alleged that police officials instigated the FIR, destroyed his documents, assaulted him, and extorted money from him.

State's Argument:
The Additional Public Prosecutor contended that the petitioner's documents did not match the required standards, and there were discrepancies in the application for purchasing coal. The State highlighted that the investigation was ongoing, involving multiple trucks and accused individuals, not solely the petitioner.

Court's Analysis:
The Court reviewed a comprehensive report submitted by the Officer In-charge of Basistha P.S., which indicated ongoing investigations and verification of tax documents related to the seized coal. The Court observed discrepancies in the E-way bills submitted by the petitioner, raising doubts about the legality of the coal transportation.

Legal Precedent Considered:
Citing the case of Som Mittal Vs. Government of Karnataka, the Court emphasized that the power under Section 482 of the Cr.P.C. should be sparingly exercised to prevent abuse of process or secure justice. The Court noted the seriousness of the offense of tax evasion and smuggling coal across state borders, considering it a societal concern.

Judgment:
After careful consideration, the Court concluded that there were no justifiable grounds to quash the FIR against the petitioner. The Court found no evidence of malice in the investigation and deemed the offense to be significant. Therefore, the petition for quashing the FIR was dismissed, and the criminal petition was disposed of accordingly.

Conclusion:
The judgment addressed the complexities of the case involving theft of coal, tax evasion, abuse of power by police officials, and the legal standards for invoking Section 482 of the Cr.P.C. The Court's decision underscored the gravity of the alleged offenses and the need to ensure justice and prevent abuse of legal processes.