Stay of criminal complaint proceedings justified where pending fiscal reference directly governs the core allegation of clandestine removal.

Criminal complaint proceedings for alleged clandestine removal under the Central Excise Act were stayed under inherent powers because the pending reference before the High Court raised the same foundational question as the prosecution. The Court applied the principle that, although fiscal proceedings and criminal prosecution are ordinarily independent, a stay is justified where the outcome of the appellate or reference matter directly affects the criminal case and parallel continuation may lead to inconsistent findings. It held that complete justice required deferring the complaint until the reference was finally decided.

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Issues: Whether the criminal complaint proceedings for alleged clandestine removal under the Central Excise Act should be stayed under the inherent jurisdiction of the Court until disposal of the pending reference before the High Court.

Analysis: The dispute in the complaint and the pending reference turned on the same foundational question whether the goods were clandestinely removed or whether the inference was unsustainable on the available materials. The Court relied on the principle that although criminal prosecution and proceedings under the fiscal statute are independent, a stay may be justified where the outcome of the appellate or reference proceedings has a direct bearing on the criminal case. It also noted that the reference questions already admitted by the High Court bore upon the very basis of the prosecution, and that allowing both matters to proceed simultaneously risked inconsistent findings. Exercising inherent jurisdiction under section 482 of the Code of Criminal Procedure, 1973, the Court found that complete justice required deferring the complaint case until the reference was decided.

Conclusion: The complaint proceedings were directed to remain stayed until the final decision of the pending reference, in favour of the petitioners.

Ratio Decidendi: Where the determination in pending fiscal appellate or reference proceedings directly governs the core factual basis of a criminal prosecution under the same taxing statute, the Court may stay the criminal case under its inherent powers to avoid conflicting decisions.

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