Excise prosecution stayed pending tribunal appeal where the underlying liability and penalty were still under challenge.

Criminal prosecution for alleged non-compliance with an excise adjudication order was kept in abeyance because the assessee's appeal against the underlying liability and penalty was already pending before the appellate tribunal. The court noted that the appeal could succeed and that any relief granted there would remove the basis of the criminal case. To avoid prejudice and in the interests of justice, the criminal proceedings were stayed until the tribunal decided the appeal.

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Issues: Whether criminal proceedings for alleged non-compliance with the excise adjudication order should be stayed pending disposal of the assessee's appeal before the appellate tribunal.

Analysis: The application for quashing was not pressed, and the only surviving relief was a stay of the criminal prosecution. The petitioner's excise liability and penalty had already been carried in appeal before the tribunal, and the appeal remained pending. In that situation, the possibility of the appeal succeeding could not be ruled out. If the appellate tribunal were to grant relief, the foundation of the criminal prosecution could disappear. To avoid prejudice and in the interests of justice, further proceedings in the criminal case were considered fit to be kept in abeyance until the appeal was heard and decided.

Conclusion: The criminal proceedings were stayed pending disposal of the appeal before the tribunal, in favour of the petitioner.

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