2009 (1) TMI 279 - HC - Central Excise

Summary

Issues: Arrest under Central Excise Act, 1944; Detention without sufficient evidence; Bail application; Conditions of bail

In this judgment by the High Court of Judicature at Bombay, the applicant was arrested on allegations of committing an offense under Section 9(1)(c) of the Central Excise Act, 1944, by using fabricated documents for seeking rebate on exported goods. The applicant had been in jail for 58 days based on the accusation related to a cheque transaction involving a substantial amount. The Vacation Court had previously given the respondent an opportunity to provide evidence of the applicant's culpability. However, the investigation was still ongoing due to an absconding accused, which the court did not consider a sufficient reason to continue detaining the applicant without concrete evidence. The court noted that the applicant had already deposited the disputed amount in favor of the Central Excise department as a gesture of good faith. Consequently, the court decided that the applicant should be released on bail, setting the bail amount at Rs. 25,000 with specific reporting conditions to the Central Excise authorities. The court emphasized that the applicant must comply with the reporting requirements to ensure his continued freedom on bail. The judgment concluded by disposing of the application after granting bail to the applicant under the specified conditions.