Bail in excise evasion case granted after principal disputed demand was deposited and received by the department.

In an alleged Central Excise duty evasion matter, the HC treated the accusation as an economic offence requiring serious scrutiny at the bail stage under section 439 CrPC. It nevertheless noted that the principal disputed excise demand had already been deposited and received by the department before the decision. Without examining the merits of the allegations, the Court held that this circumstance justified enlargement on bail, and the bail application was allowed.

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Issues: Whether the accused was entitled to bail under section 439 of the Code of Criminal Procedure, 1973 in a case involving alleged evasion of Central Excise duty, where the principal disputed demand had been deposited.

Analysis: The application arose from allegations of high-value excise evasion, which the Court treated as an economic offence requiring serious consideration at the stage of bail. At the same time, the Court noted that the principal amount of Central Excise demand had already been deposited and received by the department before the Court's decision. Without entering into the merits of the allegations, the Court found that this circumstance justified enlargement on bail.

Conclusion: The petitioner was entitled to bail and the bail application was allowed.

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