In CRM-M-38352-2014-PUNJ HC- Since provisions of VAT Act do not provide for registration of FIR and said Act is Code in itself, provisions of IPC cannot be invoked: P&H HC 
Justice Jasjit Singh Bedi [29-11-2022]

Read Order: Deepak Kumar v. State Of Punjab 

Monika Rahar

Chandigarh, November 30, 2022:  The High Court of Punjab and Haryana has held that since the provisions of the Punjab VAT Act do not provide for the registration of an FIR and the said Act is a Code in itself, the provisions of the IPC cannot be invoked. 

“It is well-settled proposition of law that if a special provision has been made qua a particular subject (in the present case Value Added Tax), the said subject is excluded from the general provisions (in the present case Indian Penal Code)”, the Bench of Justice Jasjit Singh Bedi held. 

In this case, the police received secret information stating that an oil truck which was being driven by Narinder Singh, being hand in glove with his employers, was bringing furnace oil made from tyres from Haryana and using secret/abandoned passages for the purposes of entry into Punjab in order to evade tax, thereby, committing the offence of cheating. 

The accused were alleged to have had ties with a firm which provided them the bills with the help of which these persons made further supplies. Thus, it was alleged that by cheating the Government in evading tax, they were doing illegal acts. Along with these persons, there were others involved as well. 

Pursuant to the registration of an FIR under Sections 420/120-B IPC and Section 4 of Punjab Tax on Entry of Goods into Local Areas Act, 2000, Narinder Singh was arrested and the aforesaid oil tanker containing furnace oil was recovered. During the course of investigation, Narinder Singh disclosed that he used to obtain bills etc. of the firm of the petitioner who was in connivance with them. After completion of investigation, the report under Section 173 Cr.P.C. was presented before the concerned Court. 

Hence, the present quashing plea was filed. 

After hearing the parties, the Court reiterated that there is no provision for registration of an FIR in matters of alleged evasion of tax and the provisions of the Act only provide for a mandatory penalty. Further, the Bench added that it is a well-settled proposition of law that if a special provision has been made under a particular subject (in the present case Value Added Tax), the said subject is excluded from the general provisions (in the present case Indian Penal Code). 

“Since the provisions of the VAT Act do not provide for the registration of the FIR and the said Act is a Code in itself, the provisions of the IPC also cannot be invoked”, the Court held. 

Therefore, the Court held that quite apparently an FIR could not have been registered against a person who was said to have evaded tax.

Hence, the present petition was allowed.