BENGALURU: Directing state excise authorities to release seized finished goods/manufactured beer, beer lying in tanks, raw materials and inventory in UT tanks, subject to United Breweries Limited (UBL) in Thandya Industrial Area of Nanjangud taluk of Mysuru furnishing a bank guarantee of Rs 1 crore, the Karnataka High Court permitted UBL to carry on manufacturing activities. It is subject to the outcome of the petition filed against the seizure order.
The court, however, made it clear that UBL should not transport/export 7,000 cases of beer which are brought back to the warehouse in alleged contravention of the Karnataka Excise (Possession, Transport, Import and Export of Intoxicants) Rules, without a permit from the competent authority.
Justice Hemant Chandangoudar passed the interim order recently, after hearing a petition filed by UBL challenging the April 2 seizure order passed by excise officials. UBL stated that it had submitted an application on March 13 for a permit to dispatch a consignment from the brewery to the buyer, Kerala State Beverages Corporation (KSBC), as stipulated under Section 9 of the Karnataka Excise Act, 1965, and Rule 17 of the Karnataka Excise (Possession, Transport, Import and Export of Intoxicants) Rules, 1967.
The application was duly considered, and UBL was granted a permit on March 30 to export the beer to the consignee. UBL dispatched the consignment in 17 trucks to the destination in Kerala. However, seven trucks returned to the warehouse, citing restrictions in traffic movements in Bandipur forest. The return of the stock was duly communicated to the excise officer stationed at the brewery, UBL claimed.
‘Rule 17 complied with’
In counter, the Additional Advocate-General contended that in the event of breakdowns, accidents, etc., the vehicle exporting the consignment should report to the nearest police station / excise officer and obtain an endorsement for further action.
Therefore, the petitioner has committed an offence under provisions of the Karnataka Excise Act, 1965. A mahazar was conducted, and the entire stock in the warehouse, along with raw materials in the brewery, was seized, and the petitioner was restrained from carrying out any manufacturing activities, he submitted.
UBL replied that Rule 17 of the Act had been complied with. Whether the petitioner has complied or not, requires adjudication by the confiscating authority.
The state, instead of confining the seizure that was not exported and reported, confiscated the entire intoxicant stacked in the warehouse, including raw materials, and restrained the petitioner from manufacturing, which is without the authority of law.
Permitting UBL to reply to the showcause notice, the court adjourned the hearing to April 16.