9911796707
TMI Blog1990 (11) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... ure-F as also by the refusal of the respondents to release 1571.500 gms of gold in the form of chains and penalty of Rs. 3,000/-. 2.The circumstances in which this matter arises are as follows : On 19-5-1987 certain gold articles were recovered from the possession of the petitioner. The department on finding that the gold articles were primary gold effected seizure of the same under the Gold (Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 2(r) of the Act. The Tribunal further concluded that the gold ornaments produced before it were neither unfinished nor semi-finished but were fully finished. In those circumstances, it set aside the order made by the Collector of Central Excise and exonerated the petitioner of the charge levelled against him. Prior to the passing of the order by the Tribunal, a complaint had been lodged o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the departmental adjudicatory body itself has given a finding it would not be proper to continue the prosecution. This view is supported by the decision of the Supreme Court in Uttam Chand & Others v. ITO [133 ITR 909]. 3.However, the learned Counsel for the department urged relying on a decision of the Supreme Court in P. Jayappan v. S.K. Perumal [149 ITR 696] that a decision of an adjudicatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal or reference under the Act cannot come in the way of the institution of the criminal proceedings under Section 276C and Section 277 of the Act." In the light of these observations it is clear that Supreme Court did not take a different view from what has been stated in Uttam Chand's case. But on the other hand, it reiterated the position that it is possible to quash the prosecution once l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hance of success by itself will not be a ground to initiate prosecution. That may not be a ground, in the present case, to continue the prosecution. On the facts and circumstances of this case, it must be held that the prosecution is inexpedient. Accordingly, the prosecution initiated as per Annexure-F in this case, shall stand quashed. Consequently, a direction shall issue to the authorities to r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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