Detinners Pvt. Ltd. vs Assistant Collector of Central Excise

The Assistant Collector of Central Excise, filed Case No. 118/S of 1985 before Additional Chief Metropolitan Magistrate, Esplanade, Bombay, charging the petitioners for offences punishable under Sections 9(1)(a), 9(1)(b), 9(1)(bb), 9(1)(bbb) and 9(1)(c) read with Sections 9(1)(d) and 9(1)(i) of the Central Excises and Salt Act, 1944. The grave-man of the offence was that the accused evaded to pay excise duty and removed the goods in contravention of Rules and also failed to supply the information.

The accused appeared before the Magistrate and pointed out that there is a dispute as regards liability of the petitioners to pay excise duty and dispute is pending in appeal filed before the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi. The petitioners requested the Magistrate to stay the hearing of the complaint during the pendency of the proceedings before the Tribunal. The Magistrate declined to do so and that has given rise to the present petition.

Shri Vyas, learned counsel appearing on behalf of the petitioners, submitted that the appellate proceedings filed before the Tribunal at New Delhi are still not finally determined. The learned counsel urged that it is in the interest of justice that the complaint should not be proceeded with till the appellate proceedings are disposed of. The submission is reasonable. The Magistrate to proceed with the complaint only after the fact of disposal of the proceedings before the Tribunal is brought to the notice of the Magistrate by the complainant.

Accordingly, hearing of Criminal Case No. 118/S of 1985 is deferred till the disposal of proceedings instituted by the petitioners before the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi. The complainant shall bring to the notice of the Magistrate the fact of disposal of the proceedings if the proceedings are still not disposed of, or whenever the same will be disposed of.