Bombay High Court Quashes Criminal Proceedings in Central Excise Case Due to Inordinate Delay and Lack of Sanction. Prosecution for Alleged Removal of Scrap Resistors Without Payment of Duty Fails as Complaint Filed After 4 Years and Sanction Under Section 9 of Central Excise Act, 1944 Not Obtained.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The judgment concerns two criminal applications filed under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of Criminal Case No.568 of 1982 pending before the Chief Judicial Magistrate, Thane. The applicants, T.N. Krishna Iyer and Yunus Ahmedbhai Hakimuddin, were directors of M/s. Asian Electronics Ltd., a company manufacturing electronic components. The complaint was filed by the Assistant Collector of Central Excise (Preventive) alleging that on 8th May 1978, during a transit check, a vehicle carrying 202 packets of 'Scrap Resistors' from the company's factory was intercepted. The goods were being transported without payment of central excise duty, allegedly in violation of the Central Excise Act, 1944. The complaint was filed in 1982, four years after the alleged incident, and the proceedings had been pending for over 23 years at the time of the judgment. The applicants argued that the inordinate delay in filing the complaint and the lack of a valid sanction under Section 9 of the Central Excise Act rendered the prosecution an abuse of process. The court noted that the complaint did not disclose any sanction having been obtained from the competent authority, which was a mandatory requirement for prosecution under the Act. The court held that the delay of over two decades in concluding the trial, coupled with the absence of sanction, justified quashing the proceedings to prevent abuse of the court's process. The court allowed both applications and quashed Criminal Case No.568 of 1982.

Headnote

A) Criminal Procedure Code - Quashing of Proceedings - Section 482 CrPC - Inordinate Delay - Complaint filed in 1982 for alleged offence in 1978, proceedings pending for 23 years - Held that such delay amounts to abuse of process of court and warrants quashing (Paras 1-10).

B) Central Excise Act - Sanction for Prosecution - Section 9 - Requirement of Valid Sanction - Complaint filed without obtaining sanction from competent authority as required under Section 9 of Central Excise Act, 1944 - Held that absence of valid sanction vitiates the prosecution (Paras 5-8).

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Issue of Consideration

Whether criminal proceedings pending for over 23 years should be quashed on grounds of inordinate delay and lack of valid sanction under Section 9 of the Central Excise Act, 1944.

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Final Decision

Both criminal applications are allowed. Criminal Case No.568 of 1982 pending before the Chief Judicial Magistrate, Thane, is quashed.

Law Points

  • Inordinate delay in filing complaint
  • lack of valid sanction under Section 9 of Central Excise Act
  • 1944
  • abuse of process of court
  • quashing under Section 482 CrPC
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Case Details

2005 LawText (BOM) (12) 45

Criminal Application No.2895 of 1992 and Criminal Application No.2896 of 1992

2005-12-14

S.C. Dharmadhikari, J.

Mr. Y.H. Muchhala, Senior Advocate with Ms. Hansa I. Advani, Mr. Sagheer A. Khan, Mr. Mahesh Patane i/b. Mr. A.A. Bhore for applicants; Mr. J.C. Satpute for respondent No.1; Mr. R.Y. Mirza, A.P.P. for State.

T.N. Krishna Iyer and Yunus Ahmedbhai Hakimuddin

A.K. Baig, Assistant Collector of Central Excise & Ors.

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Nature of Litigation

Criminal applications under Section 482 CrPC seeking quashing of criminal case pending before Chief Judicial Magistrate, Thane.

Remedy Sought

Quashing of Criminal Case No.568 of 1982 pending on the file of learned Chief Judicial Magistrate, Thane.

Filing Reason

Alleged removal of scrap resistors without payment of central excise duty, complaint filed after 4 years, proceedings pending for 23 years, and lack of valid sanction under Section 9 of Central Excise Act.

Issues

Whether the inordinate delay in filing the complaint and pendency of proceedings for 23 years amounts to abuse of process of court? Whether the absence of a valid sanction under Section 9 of the Central Excise Act, 1944 vitiates the prosecution?

Submissions/Arguments

Applicants argued that the complaint was filed after an inordinate delay of 4 years and the proceedings have been pending for over 23 years, causing harassment and abuse of process. Applicants argued that no sanction under Section 9 of the Central Excise Act was obtained, which is mandatory for prosecution. Respondents argued that the delay was due to investigation and the sanction requirement was not applicable.

Ratio Decidendi

Inordinate delay in filing complaint and pendency of proceedings for over two decades, coupled with lack of valid sanction under Section 9 of the Central Excise Act, 1944, amounts to abuse of process of court, warranting quashing under Section 482 CrPC.

Judgment Excerpts

These applications under section 482 of Cr.P.C. seek quashing of criminal case No.568 of 1982 pending on the file of learned Chief Judicial Magistrate, Thane. Since the complaint is common and submissions are identical, it would be convenient to dispose of these applications by a common judgement.

Procedural History

Complaint filed in 1982 by Assistant Collector of Central Excise (Preventive) for alleged offence in 1978. Criminal applications filed in 1992 under Section 482 CrPC seeking quashing. Heard and decided on 14th December 2005.

Acts & Sections

  • Code of Criminal Procedure, 1973 (CrPC): 482
  • Central Excise Act, 1944: 9
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