1986 (8) TMI 82 - HC - Central Excise

Prosecution - Quashing at process stage - Central Excise - Offence - Criminal case - Conspiracy to evade excise duty

Summary

Issues:
Petition to quash criminal case process against Accused No. 36 in a conspiracy case involving tax evasion.

Detailed Analysis:

1. The petitioner, Accused No. 36, sought a writ to quash the process issued against him in a criminal case related to tax evasion by M/s. Kirloskar Brothers Ltd. and others. The petitioner argued that he had resigned as a Director of Accused No. 31 Company before the alleged conspiracy took place, thus claiming no involvement in the conspiracy.

2. The prosecution alleged that Accused No. 31 Company and its Directors joined the conspiracy with Accused No. 1 Company on specific dates in October and November 1983. The complainant contended that the petitioner could still be guilty based on the timing of his resignation and his past association with the company.

3. The Court examined the complaint's allegations and the timeline of events. It noted that the petitioner ceased to be a Director of Accused No. 31 Company on 29-7-1983, while the alleged conspiracy involving Accused No. 31 Company occurred later in October and November 1983.

4. The Court emphasized that the complainant's claim of the petitioner's involvement in the conspiracy after his resignation lacked factual basis. It highlighted that the complainant's assertion of the petitioner formally joining the conspiracy on a specific date was baseless, as conspiracy is a continuous criminal act without formalities.

5. Considering the undisputed evidence of the petitioner's resignation and his status as an ex-director, the Court concluded that the petitioner had no connection to the alleged conspiracy post his resignation. It ruled that allowing the criminal proceedings to continue against the petitioner would be unjust and cause unnecessary harassment.

6. Consequently, the Court exercised its inherent powers under Section 482 of the Criminal Procedure Code and Article 227 of the Constitution to quash the process issued against the petitioner. The petition was successful, and the proceedings against the petitioner were terminated, emphasizing the need to meet the ends of justice promptly.

This detailed analysis outlines the key arguments, legal considerations, and the Court's reasoning leading to the decision to quash the criminal case process against Accused No. 36 in the tax evasion conspiracy case.