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2017 (8) TMI 1444 - HC - Central ExciseBail application - Clandestine manufacture - Pan Masala - it was alleged that applicant is a master mind and has made best attempt to secure financial benefit without paying excise duty while he was preparing pan Masala pouch as well as Jarda pouch bearing the Brand "Poorvai" which is corroborated from the computer records, hence the applicant is liable to be prosecuted for commission of offence under section 9 A and section 9AA of Central Excise Act 1944. Held that:- It transpires that the applicant evaded the excise duty by procuring the raw material and also not accounting the clandestine and surreptitious production in the statutory books. The clandestinely manufactured goods were supplied in the market without cover of lawful documents. The applicant is the master mind and beneficiary of entire scheme of duty evasion. The applicant had knowingly and willingly made distance in order to create a veil and to escape legal liabilities cast upon him. According to section 9AA of Central Excise Act, every person who at the time, the offence was committed was in charge shall be severally and jointly liable for being prosecuted for the aforesaid offence. There is nothing in the Act that the prosecution depends upon the result of the adjudication. Two proceedings are quite independent. The finding in one is not conclusive in the other proceedings. Both can go on simultaneously and finding in the adjudication proceedings is not binding on the criminal proceedings. A prosecution can be launched even after the completion of adjudication. Since the offence under section 9 (1A) Excise Act is cognizable and non-bailable and is grievous in nature, hence this Court does not deem it congruous to interfere in such matters. The economic offences are undoubtedly more grave in nature than those offences which are non-cognizable. Bail cannot be granted and bail application is dismissed.
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