Quashing of customs prosecution follows merits-based exoneration in parallel adjudication on the same facts.

Criminal prosecution arising from a customs complaint may be quashed where the accused has been exonerated on merits in the corresponding adjudication proceedings on the same facts and evidence. The adjudication order in this matter set aside the penalty because the only link to the seized foreign currency was a co-noticee's statement without reliable corroboration, and that finding attained finality. As the complaint and departmental proceedings rested on the same factual foundation, continuation of the criminal case against the petitioner was not justified. The criminal proceedings were therefore quashed qua the petitioner.

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Issues: Whether criminal proceedings arising out of the customs complaint could be quashed against the petitioner after he had been exonerated on merits in the adjudication proceedings on the same set of facts.

Analysis: The adjudication order had set aside the penalty against the petitioner on the ground that the only material linking him to the seized foreign currency was the statement of a co-noticee, without reliable corroboration. The complaint and the adjudication proceedings were founded on the same allegations and the same evidence. Where exoneration in departmental proceedings is on merits and not on a technical ground, and the criminal complaint rests on the very same factual foundation, continuation of prosecution would not be justified. The Court also noted that the departmental order had attained finality, as it was not challenged further by the respondents.

Conclusion: The petitioner was entitled to relief, and the criminal proceedings were quashed qua the petitioner.

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