Customs prosecution cannot survive final departmental exoneration on the same facts without independent evidence.

Departmental adjudication and criminal prosecution under the Customs Act can proceed independently, and findings in adjudication do not operate as res judicata in criminal proceedings. However, where the same facts are finally decided on merits in adjudication and the assessee is exonerated, prosecution cannot continue unless the department produces independent evidence not considered in the adjudication. In the absence of such material, continuation of the criminal complaint is futile and an abuse of process, and the complaint and related proceedings were quashed.

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Issues: Whether criminal proceedings under the Customs Act could be quashed where the very basis of the prosecution had already been negatived in departmental adjudication proceedings that culminated in final exoneration on merits.

Analysis: Departmental adjudication and criminal prosecution may proceed simultaneously, and findings in adjudication do not operate as res judicata in criminal proceedings. However, where the adjudication proceedings, based on the same facts and allegations, conclude on merits that there was no contravention and the exoneration attains finality, the prosecution cannot be continued unless the department can point to independent evidence not considered in the adjudication proceedings. In the absence of such independent material, continuation of the criminal complaint would be futile and an abuse of the process of court.

Conclusion: The criminal complaint and all proceedings arising from it were unsustainable and were quashed.

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