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of <h1>High Court quashes criminal proceedings against petitioners in Central Excise Duty evasion case</h1> <h3>Hitech Carbon Products & Anr Versus Inspector, Anti-Evasion Central</h3> Hitech Carbon Products & Anr Versus Inspector, Anti-Evasion Central - TMI Issues:1. Quashing of order rejecting petition under Section 245(2) Cr.P.C.2. Allegations of evasion of Central Excise Duty against petitioners.3. Prosecution of petitioners after exoneration in departmental adjudication proceedings.Detailed Analysis:1. The petitioners sought the quashing of the order rejecting their petition under Section 245(2) Cr.P.C., which was passed by the Additional Chief Judicial Magistrate, New Delhi. The facts revealed that the petitioners, engaged in the manufacture of carbon paper rolls, were alleged to have evaded Central Excise Duty. The Appellate Tribunal had set aside the penalty imposed on the petitioners by the Collector, Central Excise, leading to the petitioners filing a petition before the A.C.M.M. to drop criminal proceedings. The A.C.M.M. dismissed the petition, prompting the petitioners to approach the High Court under Section 482 Cr.P.C.2. The core issue revolved around the allegations of evasion of Central Excise Duty amounting to a significant sum against the petitioners. The Appellate Tribunal's finding that the petitioners were eligible for the benefits of Small Scale Industry (SSI) as per the relevant notification during the disputed period was crucial. The Tribunal's decision contradicted the allegations of evasion made by the respondent, thereby undermining the basis of the complaint. The High Court emphasized that the Appellate Tribunal's conclusive finding on the issue of duty evasion rendered the prosecution of the petitioners unsustainable, as the very foundation of the complaint was invalidated by the Tribunal's decision.3. The High Court delved into the aspect of prosecuting the petitioners after they had been exonerated in the departmental adjudication proceedings. The Tribunal's scathing remarks on the department's actions, terming it as harassment and a clear case of abuse of process, played a pivotal role in the High Court's decision. The Court highlighted the Tribunal's observation that the petitioners had faced repeated proceedings on the same issue without any valid reason, leading to the Tribunal setting aside the demands made by the Collector, Central Excise. The High Court, relying on the Tribunal's order and the principle of avoiding harassment to the assessee, quashed the criminal proceedings against the petitioners, citing it as an abuse of the process of law and a waste of the Trial Court's time.In conclusion, the High Court allowed the petition, quashing the proceedings arising from the complaint filed by the respondent and pending before the Addl. Chief Metropolitan Magistrate, New Delhi. The judgment underscored the importance of upholding the principles of justice, fairness, and the avoidance of unnecessary legal proceedings based on invalidated claims.
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