Binding excise prosecution circulars bar minor duty-evasion cases below the threshold and prevent abuse of process.

Departmental circulars issued under statutory authority and regulating excise prosecution policy were treated as binding on subordinate officers, though not on courts. The circulars required prosecution in minor cases to be avoided below the prescribed monetary threshold, except for habitual offenders, to prevent fruitless criminal litigation. As the alleged duty evasion was below the limit and no material showed the exception applied, the prosecution was contrary to the binding instructions and was liable to be quashed as an abuse of process.

---

---

Issues: Whether prosecution for alleged excise duty evasion could be quashed where the duty involved was below the monetary limit prescribed by binding departmental circulars, and whether continuation of such prosecution amounted to an abuse of the process of court.

Analysis: The petitioner was proceeded against for alleged evasion of excise duty of less than Rs. 10,000. The Board's instructions issued under the enabling power governing excise administration required officers to follow the prosecution policy and stated that prosecution in minor cases should ordinarily not be launched below the prescribed limit, subject to the exception of habitual offenders. The Court treated these circulars as binding on departmental officers, though not on courts, and held that the object of the instructions was to avoid fruitless criminal litigation in petty cases. Since the duty amount found against the petitioner was below the prescribed threshold and no material brought the case within the exception, the prosecution was contrary to the binding circulars.

Conclusion: The prosecution could not be maintained and the pending proceedings were liable to be quashed in favour of the petitioner.

Ratio Decidendi: Departmental circulars issued under statutory authority and intended to regulate prosecution policy are binding on subordinate excise , and a prosecution launched in violation of a valid monetary threshold circular for minor duty evasion is liable to be quashed as an abuse of process.

---