2024 (5) TMI 1427 - HC - Central Excise

Seeking to quash the prosecution - No Dues - Discharge Certificate issued - application of the Sabka Vishwas (Legacy Dispute Resolution) Scheme - liability of the petitioners-accused under the Central Excise Act 1944 and the Indian Penal Code - HELD THAT - In peculiar facts of this case mere pendency of an application dated 15.10.2022 for withdrawing the prosecution filed by Respondent-Complainant if any cannot be the basis for continuing the prosecution when the petitioner(s)-accused have remitted the liability and even the No Dues-Discharge Certificate and approval for withdrawing the prosecution from concerned Court stands accorded by the Respondent-Complainant competent authority. Further no fruitful purpose would be achieved in continuing with the prosecution. At the same time continuing with the prosecution despite the fact that the alleged liability has become non-existent obsolete in view of the Sabka Vishvas Legacy Dispute Resolution Scheme under which the liability stands liquidated. Further the continuance of prosecution shall unnecessarily burden the docket of the Learned Trial Court and lead to accusation which no longer survives and continuance of prosecution shall entail unwarranted suffering and humiliation to the petitioner-accused contrary to the purpose and object of the criminal justice system. Accordingly the Complaint titled as Central Excise Customs Department Ors. Versus M/s Him Cylinders Ltd. Anr. pending before Learned Chief Judicial Magistrate Amb District Una H.P. is quashed and set aside; and the petitioner(s)-accused shall stand acquitted of the accusation for all purposes so far as it relates to the instant complaint. Thus the instant petition as well as the pending application(s) if any shall stand disposed of.

Summary

Issues:
1. Quashing of prosecution under the Sabka Vishwas Scheme
2. Compliance with the SVLDRS-2019 by the accused
3. Approval for withdrawal of prosecution by the authorities
4. Continuation of prosecution despite remittance of liability
5. Burden on the trial court docket and purpose of criminal justice system

Analysis:
1. The central issue in this case was the quashing of prosecution under the Sabka Vishwas [Legacy Dispute Resolution] Scheme, 2019. The respondent-complainant had filed a complaint against the petitioners-accused for excise liability. However, the accused had deposited the liability under the Scheme, and both parties acknowledged this fact. The court was inclined to quash the prosecution considering the settlement of the liability and the purpose of the Scheme.

2. The accused had complied with the SVLDRS-2019 by depositing the liability, as confirmed by communication and a No Dues-Discharge Certificate issued by the respondent department. The court noted that the accused had fulfilled their obligations under the Scheme, leading to the request for quashing the prosecution.

3. Authorities had given approval for the withdrawal of prosecution against the accused, further supporting the request for quashing. Despite a pending application for withdrawal, the court emphasized that the remittance of liability and approval for withdrawal were significant factors in deciding to quash the prosecution.

4. The court highlighted that continuing the prosecution when the liability had been remitted and the approval for withdrawal granted would serve no useful purpose. The accused had settled the liability under the Scheme, making the prosecution obsolete. Continuing the prosecution would burden the trial court docket and cause unwarranted suffering to the accused, contrary to the criminal justice system's objectives.

5. Considering the circumstances and the purpose of the Sabka Vishwas Scheme, the court quashed the complaint against the accused, leading to their acquittal. The judgment aimed to alleviate the accused from unnecessary prosecution, recognizing the settlement of the liability and the impracticality of continuing the case. The decision was made to uphold the principles of justice and fairness in light of the Scheme's provisions.