2007 (2) TMI 225 - HC - Central Excise

Summary

Issues involved: Quashing order of criminal proceedings initiated by Commissioner of Central Excise based on allegations of clandestine removal of goods exceeding exemption limit.

Summary:
The petitioners sought a quashing order for criminal proceedings initiated by the Commissioner of Central Excise based on allegations of clandestine removal of goods exceeding the exemption limit. The Tribunal, in its order, found no evidence to prove the charge of clandestine removal by the petitioners. The petitioners argued that after a favorable adjudication order, the Department cannot pursue criminal proceedings. However, the respondent contended that independent criminal proceedings can proceed even after favorable adjudication. The Tribunal's findings favored the petitioners, stating no evidence of clandestine removal was presented. Citing various judgments, the petitioners argued against further criminal proceedings. The Court reconciled conflicting views on simultaneous adjudication and criminal proceedings, emphasizing that exoneration on merits in adjudication should halt criminal prosecution. Applying this rule, the Court quashed the criminal complaint against the petitioners, as the Tribunal's findings did not support the charge of clandestine removal. Consequently, the petition was allowed, and the criminal proceedings were quashed without costs.