Tribunal finding that no offence was made out defeated the related criminal prosecution arising from the same excise allegations.

Where the competent appellate tribunal has already held on the same foundational excise facts that no offence was made out, the criminal prosecution based on those allegations cannot be sustained. The High Court treated the Tribunal's finding as conclusive for the criminal case, since the alleged wrongful availment of the small scale industries exemption and the claimed contravention of the Central Excise Rules rested on the very basis negatived by the appellate forum. The prosecution was therefore held not maintainable and the connected criminal proceedings were quashed.

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Issues: Whether the finding of the Customs, Excise and Gold (Control) Appellate Tribunal that no offence was made out precluded continuation of the criminal prosecution arising out of the same excise allegations.

Analysis: The petitioners were prosecuted for alleged wrongful availment of the small scale industries exemption and for contravention of the Central Excise Rules. The Tribunal, however, had already held that no offence was made out. The Court treated that finding as conclusive for the purposes of the criminal case and followed the principle that where the competent appellate forum has negatived the very basis of the alleged offence, the prosecution cannot be sustained.

Conclusion: The criminal prosecution was not maintainable and was quashed.

Final Conclusion: The petitions succeeded and the connected criminal proceedings were brought to an end on the strength of the Tribunal's finding.

Ratio Decidendi: Where the competent appellate tribunal conclusively finds that no offence is made out on the same foundational facts, the criminal prosecution based on those facts cannot continue.

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