Stay of criminal prosecution where excise adjudication on the same alleged evasion is still pending and may eliminate the basis of the complaint.

Criminal prosecution for alleged excise evasion was stayed because the complaint and the pending excise show-cause notice arose from the same alleged duty liability. The court reasoned that if the excise adjudication ended in favour of the assessee, the foundation of the prosecution would disappear, and continuing the criminal case before final determination would cause unnecessary harassment and injustice. The stay order was therefore restored, and the prosecution was not permitted to proceed until the excise authority finally adjudicated the notice.

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Issues: Whether criminal proceedings for alleged excise offences should be stayed until final adjudication of the pending excise show-cause notice.

Analysis: The petition challenged the magistrate's refusal to defer the criminal case while the excise adjudication was still pending. The Court noted that the criminal complaint was founded on the same alleged duty evasion that was under adjudication before the excise authority. It held that if the adjudicating authority ultimately decided in favour of the assessee, the basis of the prosecution would disappear. In such circumstances, continuation of the criminal case before final determination of the excise liability would cause unnecessary harassment and injustice.

Conclusion: The criminal proceedings were ordered to remain stayed until the Collector, Central Excise, Surat finally adjudicated the show-cause notice, and the order refusing stay was set aside.

Final Conclusion: The revision succeeded and the prosecution was held not to proceed until the underlying excise adjudication attained finality.

Ratio Decidendi: Where criminal prosecution is founded on the same alleged excise evasion that is sub judice in pending adjudication proceedings, the criminal case should be stayed until the adjudication becomes final if that determination may erase the very basis of the prosecution.

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