TaxTMI 
TaxTMI 
SEARCH, SEIZURE, ARREST AND PROSECUTION
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....n in Section 18 of the C Excise Act, 1944, which provides that all searches should be made in accordance with the provisions of the Code of Criminal Procedure. 2.2 Rules 22 and 23 of the Central Excise Rules, 2002 (hereinafter referred to as the said Rules), empower the authorized officer to enter and search any premises, conveyance or other place. Further, rule 24 ibid specifically empowers such officer to effect a seizure or detention. Moreover, Section 12 of the Central Excise Act, 1944, empowers the Central Government to apply the provisions of the Customs Act to the Central Excise also. In exercise of such powers the Central Government has issued Notification No.68/63, dated 4.5.1963 modifying and extending the various sections of Cus....
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....eve that any goods, which are liable to excise duty but no duty has been paid thereon or the said goods were removed with the intention of evading the duty payable thereon, the Central Excise Officer may detain or seize such goods. 3.2 The power to release seized goods emanates from the power to seize. The goods seized may be released provisionally under bond in the Format specified under the erstwhile Central Excise Rules, 1944 [bond] along with 25% security or surety by the officer who is normally competent to adjudicate the case. The adjudicating officer will also consider the importance of such goods for evidence, and will release the goods provisionally if the bond is furnished. Wherever necessary, sample may also be drawn. The adjudi....
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....g arrest. 2. Prosecution 2.1 Besides the departmental adjudication, prosecution may also be launched under Section 9 of the Central Excise Act, 1944 for the offences under Section 9(1) of the Act. As per provisions of Section 9AA, prosecution may be launched against any person, Director, Manager, Secretary or other officers of a company or partner/proprietor of the firm, who is responsible for the conduct of the business of the company/firm and is found guilty of the offences under the Central Excise Act/Rules. 2.2 A minimum limit of Rs. 25 lakhs of duty involvement has been decided for launching prosecution so as to ensure better utilization of manpower, time and resources of the Department. However, prosecution can be considered in cas....
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....idence to show their direct involvement in the offence. 2.7 Under executive instruction the Chief Commissioner of Central or in specified cases, the Director General of Central Excise Intelligence has power to sanction prosecution. 2.8 Once prosecution is sanctioned, the complaint should be filed in court immediately after sanction of prosecution. If the complaint cannot be filed sane reason, the matter should be reported to the authority who sanctioned the prosecution. 2.9 Procedure for withdrawal of prosecution: 2.9.1 In respect of cases, where sanction for filing criminal complaint already been given by the Chief Commissioner/Director General but complaint has not yet been filed, Ministry of Law has opined that the authority withdraw....