- (1.) SAROJ Bala, J. By means of this application under Section 482 Cr. P. C. the applicant seeks the quashing of charge- sheet and summoning order dated 11-5-2007 passed by the Additional Chief Judicial Magistrate Court No. 1 Ghaziabad in case No. 1866 of 2007 under Section 3/7 of the Essential Commodities Act, 1955 P. S. Muradnagar District Ghaziabad.
(2.) THE factual position of the case is that M/s. Hazoor Sahib Chemicals Pvt. Ltd. Duhai, District Ghaziabad through its directors obtained licence on 21-12-2000 for Naphtha from District Supply Officer, Ghaziabad for usage of Naphtha as a raw material. THE directors of the company in conspiracy with some unknown persons imported 11000 MTs Naphtha in the year 2001 on payment of custom duty. A large quantity of Naphtha was diverted on the basis of false and fabricated documents such as challans, bill books, invoices for the purpose of cheating and evasion of taxes and duties. THE case was investigated by the Central Bureau of Investigation. After investigation charge-sheet was submitted under Section 120-B read with Sections 420, 467, 468, 471 I. P. C. and Sections 7 and 9 of Essential Commodities Act read with clause 3 (iv) and (v) of Naphtha (Acquisition, Sale, Storage and Prevention of use in Automobiles) Order, 2000. On the basis of charge-sheet cognizance was taken against the applicant and five others for the offences under Section 3/7 of Essential Commodities Act. Heard Shri V. P. Srivastava, learned Senior Advocate appearing on behalf of the applicant, Shri G. S. Hajela, learned Counsel for the C. B. I. and have perused the record. The learned Counsel for the applicant argued that he is an employee of the company and was not a beneficiary in the sale and purchase transactions of Naphtha. The Naphtha Control Order, 2000 being not applicable on the date of the registration of the First Information Report no case under Section 3/7 of Essential Commodities Act is made out. Naphtha was importable item. By Government of India Notification No. 2 (RE-2001)/1997-2002 dated March 31, 2001 Naphtha was made a free importable item. The said notification superseded the Naphtha Control Order, 2000. The learned Counsel urged that M/s. Hazoor Sahib Chemicals Pvt. Ltd. held valid licence for import and usage of Naphtha. It is a case of evasion of taxes and provisions of Essential Commodities Act are inapplicable.
(3.) THE learned Counsel for the opposite party argued that EXIM policy was superseded by the Government Notification and not the Naphtha Control Order, 2000. Naphtha was restricted item which could be used as fuel for power generation under licence or by a user without licence subject to the condition that he will sell Naphtha to crude oil refinery only. Naphtha became freely importable item under the EXIM policy but its acquisition was subject to the Naphtha Control Order, 2000. THE condition regarding end use declaration of Naphtha to custom authorities was waived by the Government Notification dated March 31, 2001. M/s. Hazoor Sahib Chemicals Pvt. Ltd. alleged to have sold 11000 MTs Naphtha to sixteen parties for processing the solvent but investigation revealed that eight firms purchased Naphtha and six firms disclosed sale and purchase on papers alone. One firm was found closed and one firm denied to have purchased the solvent. I have given my thoughtful consideration to the submissions made on behalf of both the parties.;