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of <h1>Supreme Court Upholds Dismissal of Excise Department's Appeal in Ayurvedic Medicines Case</h1> The Supreme Court dismissed the Excise Department's appeal against a mother and son accused of evading excise duty on Ayurvedic Medicines. The Magistrate ... Whether criminal complaint by dept. against the assessee during pendency of appeals before HC, is maintainable - HC has upheld the contention of the applicants – held that the proceedings are ab initio illegal & unfounded, there is no need to ask the applicants to observe the formality of going back and presenting an application for discharge – criminal complaint by dept. on assumption of evasion in future is un-maintainable – possibility of filing review petition can’t affect finality of order Issues:Challenging the maintainability of a complaint filed by Deputy Commissioner of Customs and Central Excise, Noida against a mother and son. Assessment of manufacturing activities as Ayurvedic Medicines or cosmetics by the Central Excise Department. Imposition of excise duty, interest, and penalties. Filing of criminal complaint despite pending appeals. Discharge of accused by Magistrate at Delhi. Argument regarding the maintainability of criminal proceedings. Reference to relevant legal cases. Termination of criminal complaint and award of litigation costs.Analysis:The case involved a challenge to the complaint filed by the Deputy Commissioner of Customs and Central Excise against a mother and son regarding the manufacturing activities of Ayurvedic Medicines. The Central Excise Department contended that the products were cosmetics, leading to the imposition of excise duty, interest, and penalties. Despite pending appeals, a criminal complaint was filed against the accused, alleging evasion of excise duty and offenses under the IPC. The accused succeeded in a Civil Misc. Writ Petition before the Allahabad High Court, which found no suppression, fraud, or under-valuation, setting aside previous adverse orders.The Excise Department appealed to the Supreme Court, which dismissed the appeal. Subsequently, the Magistrate at Delhi discharged the accused, while the criminal case at Meerut remained pending. The applicants sought termination of the Meerut proceedings based on the High Court's findings. The Excise Department persisted in pursuing the criminal proceedings, arguing that subsequent assessments could impact the case, a claim dismissed by the Court. The Court emphasized the finality of judgments and rejected the argument for continuing the criminal complaint based on potential review petitions.The Court also addressed the argument that the complaint under Section 9 of the Central Excise Act and IPC Section 420 was un-maintainable, given the High Court's findings. The Court cited legal cases and highlighted the need to consider each case's specific circumstances. Ultimately, the Court allowed the petitions, terminating the criminal complaint and ordering the Central Excise Department to pay litigation costs to the applicants.In conclusion, the judgment focused on the maintainability of the complaint, the assessment of manufacturing activities, the imposition of duties and penalties, the handling of criminal proceedings, and the application of legal precedents. The Court's decision to terminate the criminal complaint and award costs underscored the importance of legal clarity and adherence to due process in such matters.
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