Identical allegations rejected in final excise adjudication cannot support continued criminal prosecution for evasion.

Criminal prosecution for alleged clandestine removal and excise duty evasion was held unsustainable where the same allegations had been rejected on merits in departmental adjudication. The appellate authority found no evidence that the transported goods were substitute goods and concluded that the finding of clandestine removal was unsupported; that order attained finality after the departmental challenge was withdrawn. Applying the higher criminal standard of proof and the principle against continuing proceedings on an identical factual foundation already conclusively negatived, the Court treated the prosecution as an abuse of process and quashed the proceedings.

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Issues: Whether criminal prosecution for alleged clandestine removal and evasion of excise duty could be sustained after the departmental adjudication was reversed on merits and the appellate authority found no evidence to support the demand and penalty.

Analysis: The complaint was founded on the same allegations and material that had been examined in the departmental proceedings. The adjudicating authority had initially confirmed duty demand, confiscation and penalties, but the appellate authority found that the goods covered by the transport documents were not shown, on evidence, to be substitute goods and that the finding of clandestine removal was unsupported. The appellate order allowed the appeals on merits, and the departmental challenge to that order was withdrawn. Where exoneration in adjudication is on merits and the foundation of the criminal case is identical, continuation of prosecution is an abuse of process, particularly because the criminal standard of proof is higher. The pendency of the prosecution could not survive once the adjudicatory finding in favour of the accused attained finality.

Conclusion: The criminal prosecution could not be continued and was held unsustainable against the petitioners.

Final Conclusion: The proceedings were quashed because the accusation was identical to that rejected on merits in the final departmental adjudication.

Ratio Decidendi: Where identical allegations are conclusively negatived on merits in departmental adjudication and that finding attains finality, a criminal prosecution founded on the same material cannot be allowed to continue.

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