Mens rea requirement governs prosecution initiation, with Principal Collector sanction and targeted action against culpable executives. Prosecution under the Central Excise & Salt Act requires final sanction by the Principal Collector and must be based on evidence of mens rea or active involvement in duty evasion; prosecutions against companies are limited to those directors or executives with demonstrable culpability. Arrests should be exceptional, decisions on prosecution taken promptly after adjudication (or during adjudication if delay would prejudice the case), and investigation reports prepared by designated officers must be forwarded for sanction before filing criminal complaints. Once launched, prosecutions must be vigorously monitored, exhibits secured, and appeals considered where court sentences are lighter than statutory intent.