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        Central Excise

        2020 (8) TMI 694 - HC - Central Excise

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        Firm accused proceedings must follow statutory summons and self-chosen representation, not a court-appointed representative. Where a partnership firm is arraigned as an accused, summons must be served on the firm in the prescribed manner and the entity must then choose its own ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                            Firm accused proceedings must follow statutory summons and self-chosen representation, not a court-appointed representative.

                            Where a partnership firm is arraigned as an accused, summons must be served on the firm in the prescribed manner and the entity must then choose its own representative for inquiry or trial. The Court cannot compel a particular partner or other person to represent the firm, nor substitute its own choice for the firm's selection. The proper judicial role is confined to verifying whether the appearing person is in fact the authorised representative and ensuring compliance with the statutory procedure. The prosecution was therefore permitted to proceed by serving summons on the firm and continuing under the representation mechanism recognised by the Code.




                            Issues: Whether, in a prosecution against a partnership firm as an accused, the Court could compel a particular person to represent the firm and whether the proceedings could continue by serving summons on the firm and permitting it to appoint its representative.

                            Analysis: The complaint already arrayed the firm as an accused. The governing procedure for a corporate body or firm is service of summons in the prescribed manner and thereafter appointment of a representative by the entity itself for the inquiry or trial. The Court cannot substitute its own choice of representative or compel a particular partner to appear on behalf of the firm. Once the earlier orders had recognised that the petitioner could not be forced to represent the firm after his retirement, the proper course was to serve the firm and proceed in accordance with the representation mechanism under the Code.

                            Conclusion: The contention that the prosecution could not proceed for want of a court-directed representative was rejected; the firm was to be summoned and the matter could proceed under the statutory procedure.

                            Final Conclusion: The criminal original petition failed, and the trial court was directed to continue the prosecution by following the procedure applicable to service of summons on the firm and its representation during trial.

                            Ratio Decidendi: Where a firm or corporate body is an accused, the entity has the right to choose its representative, and the Court's role is limited to determining whether the appearing person is in fact such representative and to ensuring proper service of summons.


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                            ActsIncome Tax
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