1987 (8) TMI 107 - HC - Central Excise

Summary

Issues:
Petition for quashing of complaint under Section 9 of the Central Excises and Salt Act, 1944.

Analysis:
The judgment by I.S. Tiwana, J. pertains to a petition filed by three individuals and a company seeking to quash a complaint under Section 9 of the Central Excises and Salt Act, 1944. The complaint alleged that the company manufactured excisable goods without the required license and failed to pay duty, rendering them liable under Section 9 of the Act. However, the petitioners argued that the complaint did not specify their involvement in the alleged offense. The counsel for the petitioners contended that Section 9 of the Act applies only to individuals who have committed the offense. The respondent's counsel argued that the petitioners, being Managing Directors and General Manager of the company, were involved in the manufacturing process. The judge noted that the complaint did not contain any specific allegations against the petitioners regarding their roles in the offense. Drawing a comparison with a Supreme Court case, the judge emphasized the lack of averments regarding the petitioners' positions in the company, making the complaint unsustainable.

The judge highlighted that the complaint did not mention the position of the third petitioner as the Manager of the company, unlike the case cited by the respondent's counsel. As a result, the judge found the argument for proceeding against the petitioners unsubstantiated. The judge concluded that without specific allegations against the petitioners regarding their involvement in the offense, the complaint and proceedings against them were not maintainable under Section 9 of the Act. Consequently, the judge allowed the petition and quashed the complaint and ongoing proceedings before the Chief Judicial Magistrate, Jalandhar.