1987 (10) TMI 71 - HC - Central Excise

Summary

Issues:
1. Application under Section 482 of the Criminal Procedure Code to quash criminal prosecution.
2. Relief sought for stay of proceedings in the criminal case.
3. Allegations of non-compliance with duty payment and penalty imposed by the Collector of Central Excise.
4. Appeal pending before the Customs, Excise and Gold (Control) Appellate Tribunal.
5. Decision on whether to stay criminal proceedings pending appeal.

Analysis:
The petitioner, a company engaged in cement manufacturing, sought to quash a criminal prosecution against them in a case pending before the Judicial Magistrate. Initially, the petitioner requested to quash the proceedings but later focused on obtaining a stay on the case. The case arose from allegations of non-compliance with duty payment and penalty requirements by the Central Excise authorities, leading to a significant amount being claimed from the petitioner. The Collector of Central Excise had issued an order confirming the duty payment and imposing a penalty, prompting the petitioner to appeal the decision before the Tribunal. The Tribunal, in a stay application, directed the petitioner to deposit a portion of the due amount and provide a bank guarantee for the balance. The petitioner complied with these conditions, and their legal representative expressed intentions to expedite the appeal process before the Tribunal.

The High Court considered the circumstances where the appeal before the Tribunal might result in a favorable outcome for the petitioner, indicating that no offense may have been committed. In the interest of justice, the Court granted the stay of the criminal proceedings until the appeal is heard and decided by the Tribunal. The Court emphasized the possibility of a favorable appeal decision impacting the criminal case, leading to the stay being allowed to ensure fairness and proper adjudication of the matter. The ruling made the stay of the criminal proceedings absolute, aligning with the petitioner's request and the legal considerations presented during the hearing.