Excise prosecution cannot survive once the underlying adjudication order is set aside on appeal.

Criminal prosecution for alleged excise duty evasion cannot be sustained where it is founded on an adjudication order that has later been set aside in appeal. The complaint in this matter rested on a Central Excise order confirming duty demand and penalties, but the appellate Tribunal annulled that order. Applying the settled principle that prosecution based on an overturned finding lacks legal foundation, the court held the continuation of the criminal case to be unsustainable and quashed it.

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Issues: Whether prosecution for alleged excise duty evasion could continue after the Tribunal set aside the adjudication order confirming duty and penalty.

Analysis: The complaint was founded on the adjudication order of the Central Excise authorities confirming duty demand and penalties. That order was subsequently set aside by the appellate Tribunal. In view of the settled principle that criminal prosecution based on a finding which has been annulled in appeal cannot be sustained, the continuation of the prosecution had no legal basis.

Conclusion: The prosecution was held to be unsustainable and the criminal case was quashed.

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