Inherent criminal jurisdiction cannot stifle a separate pending trial when connected excise findings are insufficient to end prosecution.

Criminal proceedings based on alleged wrongful availment of Modvat credit on the strength of fake documents were sought to be quashed under the inherent powers of the HC, but prior orders in connected excise and income-tax matters were treated as insufficient to stop a separate prosecution already pending before the Magistrate. The court emphasised that parallel remedies and separate proceedings could not be used to stifle a criminal trial at an early stage. The quashment request was rejected as premature, leaving the criminal case undisturbed.

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Issues: Whether the criminal proceedings pending before the Magistrate should be quashed under Section 482 of the Code of Criminal Procedure, 1973 on the ground that the foundation of the prosecution had allegedly been undermined by orders passed in connected excise and income-tax proceedings.

Analysis: The petition sought interference with criminal proceedings arising from allegations of wrongful availment of Modvat credit on the basis of fake documents and related statements recorded under the Central Excise law. The prior orders relied upon by the petitioners were treated as insufficient to halt the criminal case, since the prosecution before the Magistrate was a separate proceeding and was already in progress. The Court also noted the availability of other legal remedies and held that the inherent jurisdiction could not be used to stifle a pending criminal trial at this stage.

Conclusion: The request for quashment was rejected and the petition was held to be premature, with the criminal proceedings left undisturbed.

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