VALLABH ALLOYS Vs. INSPECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) QUASHING of impugned order of 3rd November, 2006 vide which petitioners' application for dropping of proceedings arising out of the complaint under Section 9 of Central Excises and Salt Act, 1944 is sought in this petition. While entertaining this petition, proceedings before trial court were stayed and at the final hearing of this petition, it was urged by learned Senior Counsel for petitioners that continuance of proceedings arising out of the complaint (Annexure -A) in question is an abuse of process of court as monetary limit for launching prosecution in pursuance to complaint in question is Rs. 25 lac. To contend so, attention of this Court was drawn to Central Excise Board's letter of 12th December, 1997 (Annexure -D). It was pointed out by learned Senior Counsel for petitioners that in the rectification proceedings vide order of 24th February, 2004 the penalty amount has been reduced and the duty imposable has been recomputed at Rs. 11,71,343/ -, which is less than Rs. 25 lac. and so the proceedings arising out of the instant complaint deserves to be quashed. To contend so, reliance is placed upon decision in M/s. Hitech Carbob Products and Anr. v. Inspector Anti -Evasion Central Excise, New Delhi -, 1999 (2) JCC (Delhi) 584. Learned counsel for respondent had maintained that departmental proceedings and these criminal proceedings can go side by side and reduction of duty imposable in rectification proceedings is an aspect which is required to be considered at trial and not while exercising inherent jurisdiction of this Court under Section 482 Cr.P.C. and so, the impugned order is well merited.

(2.) REFERENCE has been made to Central Excise Board's letter of 12th December, 1997 which prescribes monetary limit of Rs. 25 lac. and above for launching prosecution and it stands admitted by respondent in reply/response that there is subsequent reduction of duty to Rs. 11,71,343/ - but this ipso facto does not lead to withdrawal of prosecution already launched and this aspect has been clarified by Central Excise Board vide its earlier circular of 4th April, 1994. The response/reply filed to this petition is accompanied by an affidavit of concerned Assistant Commissioner, Central Excise Delhi.

(3.) IN view of aforesaid, this petition is disposed of with liberty to petitioners to urge the pleas taken herein before trial court at the stage of hearing on the point of charge.