Customs prosecution after merits-based exoneration stayed pending further consideration and response on the same underlying facts.

Criminal proceedings under the Customs Act were considered in light of an earlier adjudication quashing the demand on merits, with reliance placed on the principle that prosecution on the same facts may amount to abuse of process where exoneration in adjudication is substantive. The Court noted the objection that the appellate adjudication had not attained finality because an appeal was pending, but found the issue required further consideration. Pending counter affidavit, the summoning order and the order rejecting discharge were kept in abeyance and stayed till the next date.

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Issues: Whether criminal proceedings and the summoning order under the Customs Act should be stayed in view of the earlier adjudication order quashing the demand on merits; and whether the matter required further consideration.

Analysis: The applicants relied on the earlier appellate adjudication and the principle that, where exoneration in adjudication is on merits and the allegation is found unsustainable, continuation of criminal prosecution on the same facts may amount to abuse of process. The Court noted that the adjudication had been quashed on merits and that no interim order negating that position was shown. The opposite side's objection that the appellate adjudication had not attained finality because an appeal was pending before the Supreme Court was noted, but the Court found that the question required consideration. Pending filing of counter affidavit, the summoning order and discharge rejection order were kept in abeyance.

Outcome: The matter was directed to be listed for further consideration, counter affidavit was called for, and the impugned summoning order and discharge rejection order were stayed till the next date.

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