TMI BlogCentral Excise - Guidelines for launching prosecution under the Central Excise & Salt Act, 1944X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 208/6-M/77-CX.6 dated 26th July, 1980 (ii) No. 208/10/85/CX.6 dated 19-6-1985 (iii) No. 208/20/85 CX.6 dated 15-10-85 (iv) No. 208/19/86 CX.6 dated 30-9-1986 2. The guidelines so far issued are not being revised and incorporated in this letter. These are as unders- (i) Prosecution should be launched with the final approval of the Principal Collector after the case has been carefully examined by the Collector in the light of the guidelines. (ii) Prosecution should not be launched in cases of technical nature, or where the additional claim of duty is based totally on a difference of interpretation of law. Before launching any prosecution, it is necessary that the department should have evidence to prove that the person, comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Rs. 10,000/- was prescribed in the instructions contained in Board's letter F.No. 208/6/M-77- CX.6 dated 26-7-1980. Based on experience, and in order not to fritter the limited man-power and time of the Department on too many petty cases, it has now been decided to enhance this limit to Rs. 1 lakh. But in the case of habitual offenders, the total amount of duty involved in various offences may be taken into account while deciding whether prosecution is called for. Moreover, if there is evidence to show that the person or the company has been systematically engaged in evasion over a period of time and evidence to prove malafides is available, prosecution should be considered irrespective of the monetary limit. (iv) One of the importan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should indicate at the time of passing the adjudication order itself whether he considers the case to be fit for prosecution so that it should be further processed for being sent to Principal Collector for sanction. 3. Procedure for prosecution: (i) Consequent upon the creation of the post of Principal Collector, the procedure for sanctioning of the prosecution is being modified. In all such cases where the Collector of Central Excise incharge of judicial work is satisfied that prosecution should be launched, an investigation report for the purpose should be launched, an investigation report for the purpose of launching prosecution should be carefully prepared and signed by an Asstt. Collector, endorsed by the Collector and forwarded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore a Court. The list of exhibits etc. should be finalised in consultation with the Public Prosecutor at the time of drafting of the complaint. No time should be lost in ensuring that all exhibits are kept in safe custody. (v) Section 9 of the Central Excises and Salt Act provides that imprisonment for a terms which may extend to 3 years or a fine or both may be imposeds on a person convicted for offences under this Section. It has been found, however, that most Courts do not impose prison sentences inspite of the statutory provision of the Act. In relation to offences where the duty leviable on the excisable goods exceeds one lakh of rupees, Section 9 provides that the convicted person shall be punishable with imprisonment for a term not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness etc. of person convicted under the Act by a Court of Law. The power is being exercised very sparingly by the Courts. The Board desires that in ail cases, the department should make a prayer to the Court to invoke this section in respect of all persons who are convicted under the Act. (viii) A Prosecution Register in a form enclosed as Annexure II to this letter may be maintained in the prosecution Cell of the Collectorate Headquarters. Director General (Inspection) and Principal Collector, who would be inspecting the offices of Collectors should specially check on these points at the time of inspection. 4. Whether or not a case is suitable for prosecution and adequate evidence is forthcoming for securing conviction also depends ..... X X X X Extracts X X X X X X X X Extracts X X X X
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