Excise duty prosecution stayed after prosecution evidence, pending final appeal on duty liability and reassessment outcome

Criminal proceedings based on alleged excise duty evasion were linked to an assessment that had already been set aside, with the duty liability still pending in appeal after reassessment. Because the extent of evasion had not reached finality, continuation of the trial to final evidence and sentencing was considered inappropriate. However, a complete stay at the initial stage was refused since only one witness had been examined. The trial was allowed to continue only up to completion of prosecution evidence, and further proceedings were stayed until disposal of the appeal before the Appellate Tribunal, giving the petitioner partial relief.

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Issues: Whether further criminal proceedings arising out of alleged excise duty evasion should be stayed pending disposal of the statutory appeal and final determination of the duty liability.

Analysis: The prosecution was founded on an assessment that had already been set aside and the matter was still pending in appeal after a fresh reassessment. Since the extent of duty evasion had not attained finality, continuation of the trial to the stage of final evidence and sentencing was considered inappropriate. At the same time, a complete stay at the initial stage was declined because only one witness had been examined.

Conclusion: The trial was directed to proceed up to completion of the prosecution evidence, and thereafter further proceedings were stayed until disposal of the appeal before the Appellate Tribunal. The petitioner obtained partial relief.

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