https://www.taxtmi.com/caselaws?id=446390 A cheque dishonour prosecution under Section 138 of the Negotiable Instruments Act requires the cheque to be issued towards an existing legally enforceable debt or liability. Where the alleged excise duty liability had not been adjudicated and remained uncrystallised under the Central Excise Act and applicable rules, mere search findings, recorded statements, or departmental suspicion of evasion did not create an enforceable debt. The Gujarat HC held that cheques issued before determination of the liability could not sustain Section 138 proceedings, and the complaints and consequential proceedings were quashed. en-us Wed, 08 Nov 2023 00:00:00 +0530 Sat, 02 Dec 2023 09:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446390 A cheque dishonour prosecution under Section 138 of the Negotiable Instruments Act requires the cheque to be issued towards an existing legally enforceable debt or liability. Where the alleged excise duty liability had not been adjudicated and remained uncrystallised under the Central Excise Act and applicable rules, mere search findings, recorded statements, or departmental suspicion of evasion did not create an enforceable debt. The Gujarat HC held that cheques issued before determination of the liability could not sustain Section 138 proceedings, and the complaints and consequential proceedings were quashed. Case-Laws Indian Laws Wed, 08 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446390