Threshold quashing in criminal tax complaints is unavailable when the complaint discloses an offence and defence pleas require trial.

Criminal proceedings under section 482 CrPC may be quashed at the threshold only if the complaint and accompanying material, taken as they stand, disclose no offence. Allegations that false information was furnished about the despatch and destination of goods were sufficient to sustain the complaint under section 50(1)(j) of the Delhi Sales Tax Act, 1975. Defences based on trade practice, consignment sales, statutory exceptions under the Central Sales Tax Act, and absence of mens rea were treated as matters for trial and not for initial quashing. The petition for quashing was therefore not maintainable on the facts pleaded, and the proceedings were permitted to continue.

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Issues: Whether the complaint and criminal proceedings under section 50(1)(j) of the Delhi Sales Tax Act, 1975 were liable to be quashed in exercise of inherent powers under section 482 of the Code of Criminal Procedure, 1973 on the ground that no offence was made out and the defence pleas could be considered at the threshold.

Analysis: The complaint alleged that false information was furnished in the company secretary's letter regarding the place from which the goods were despatched and the destination of the consignments. The governing test for interference at the initial stage was whether, on the face of the complaint and accompanying papers, and without adding to or subtracting from them, no offence was disclosed. The objections based on trade practice, consignment sales, statutory exceptions under the Central Sales Tax Act, 1956, and absence of mens rea were treated as matters of defence, suitable for consideration by the trial court and not for determination in proceedings under section 482.

Conclusion: The petition for quashing was not maintainable on the facts disclosed in the complaint, and the proceedings were allowed to continue.

Ratio Decidendi: Criminal proceedings may be quashed at the threshold under section 482 only when the complaint and accompanying material, taken as they stand, disclose no offence; disputed defence contentions cannot be examined for that purpose.

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