2013 (11) TMI 1616 - HC - Central Excise

Summary

Issues involved: Complaint filed u/s 9 & 9AA of Central Excise Act, 1944 against petitioner and others for contravening Central Excise Rules, 2002 by removing finished products without assessment or duty payment.

Summary:
The complaint case u/s 9 & 9AA of the Central Excise Act, 1944 was filed against the petitioner and others for contravening Central Excise Rules, 2002 by removing finished products without assessment or duty payment. The petitioners sought quashing of the proceedings on the grounds of the complaint being misconceived and illegal. They argued that the company, as a juristic person, should have been impleaded as the main accused alongside the directors. Reference was made to Section 9AA of the Act which holds persons in charge of the company responsible for offences committed by the company. The petitioners contended that unless the company is made an accused, the directors cannot be prosecuted in a criminal trial.

The Court considered the arguments and legal principles, including a decision by the Apex Court, and concluded that without arraigning the company as an accused, the directors cannot be held liable in a criminal action. The Court quashed the proceedings but allowed for the complainant to file a fresh complaint on the same cause of action before a competent court. The Court acknowledged the mistake made by the Magistrate in issuing process without fully considering the facts stated in the complaint.

In light of the above, the revisional applications were disposed of, and the Court directed the supply of a certified copy of the order to the parties upon application.