Reasonable exercise of summons power in excise inquiries requires bona fide necessity, not arbitrary insistence on the Managing Director.

The power to summon a person in an excise inquiry must be exercised reasonably and only when the authority bona fide considers that attendance necessary for the inquiry. In a company matter, the authority should ordinarily first examine a duly authorised and knowledgeable representative, but it is not confined to that witness alone and may call another person if the record shows the earlier statements are incomplete, evasive, or insufficient. Because the inquiry is a judicial proceeding, the summoning power requires careful factual justification. On the facts stated, the Managing Director's summons was held unjustified and was quashed, with liberty to proceed further in accordance with law if summoning later became necessary.

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Issues: Whether, in an inquiry under Section 14 of the Central Excise Act, 1944, the authority could summon the Managing Director of a company when an authorised company had already appeared and the summons was issued only for recording statements.

Analysis: The power under Section 14 is wide, but it is not arbitrary. A person may be summoned only when the authority considers his attendance necessary for the inquiry, and that requirement must be tested on the facts with an element of reasonableness. In the case of a company, the authority should ordinarily first examine a duly authorised and knowledgeable representative, but it is not bound to accept that representative as the only witness. If the statements already recorded appear incomplete, evasive, or insufficient, the authority may call any other person, irrespective of status, provided necessity is shown by the record. The inquiry being a judicial proceeding also reinforces the need for careful and reasonable exercise of the summoning power.

Conclusion: The summons to the Managing Director was not justified on the facts then obtaining, and the impugned summons was quashed with liberty to proceed further in accordance with law if summoning became necessary.

Ratio Decidendi: The statutory power to summon under Section 14 of the Central Excise Act, 1944 must be exercised reasonably and only when the authority forms a bona fide view that the person's attendance is necessary for the inquiry.

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