Wrong Batch Numbers On Liquor Bottles Due To Labelling Error Can't Attract Illegal Transport Charge Under Excise Act: HP High Court

The Himachal Pradesh High Court has quashed criminal proceedings against the proprietor of a liquor bottling unit accused of illegally transporting Indian Made Foreign Liquor (IMFL), holding that transportation of 400 cases under a valid permit could not attract prosecution under Section 39 of the Himachal Pradesh Excise Act merely because some bottles bore incorrect batch numbers due to a labelling error.

Justice Sandeep Sharma remarked that: “400 boxes of IMFL were being transported under valid permit and some of the bottles which were found of different batches, though was of Batch No.15, but labour responsible for labelling the Batch number wrongly stamped Batch Nos.9 and 14. On account of aforesaid discrepancy, if any, offence under Section 43 of the Act can be said to have been committed...”

Background:

The Court held that registration of a case under Section 39 in respect of the two excess boxes could not be faulted because those boxes were admittedly being transported without a permit.

However, it rejected the State's contention that the petitioner could also be prosecuted under Section 39 merely because some bottles in the permitted consignment carried different batch numbers. 

After examining Sections 66 and 67 of the Excise Act, the Court accepted the petitioner's contention that the offence concerning the two unauthorised boxes was compoundable. It noted that Section 67 expressly permits compounding of certain offences relating to transport or possession of liquor. 

Further the Court remarked that, no fruitful purpose would be served by permitting FIR sought to be quashed to sustain, rather in that eventuality, petitioner would be unnecessarily subjected to the ordeal of protracted trial, which is otherwise bound to fail.

Thus, the High Court quashed the FIR.

Case Name: Manik Kumar V/s State of H.P.

Case No.: Cr.MMO No. 401 of 2023

Date of Decision: 06.05.2026

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