Excise prosecution may be deferred while duty liability remains pending before the appellate tribunal.

Where a criminal complaint for alleged excise offences was founded on the same duty liability then under challenge in pending appellate proceedings before the Tribunal, continuation of the prosecution was considered inappropriate until that appellate dispute was resolved. The Magistrate was directed to proceed only after the outcome of the Tribunal proceedings was placed before him, and the hearing of the criminal case was deferred pending disposal of the appeal.

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Issues: Whether the hearing of the criminal complaint for alleged excise offences should be deferred until disposal of the petitioners' appeal before the Customs, Excise and Gold (Control) Appellate Tribunal.

Analysis: The complaint arose from alleged evasion of excise duty and contraventions of the excise law, while the petitioners' liability to pay duty was already under challenge in pending appellate proceedings before the Tribunal. In these circumstances, continuation of the criminal case before final determination of the appellate dispute was considered inappropriate, and the Magistrate was directed to proceed only after the outcome of the Tribunal proceedings was brought to his notice.

Conclusion: The hearing of the criminal case was deferred until disposal of the proceedings pending before the Customs, Excise and Gold (Control) Appellate Tribunal, and the relief was granted in favour of the petitioners.

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