(Sanjiv Khanna and Bela M. Trivedi, JJ.)
Additional Commissioner of Central Excise (Legal) Bengaluru ______________________________________________ Appellant;
v.
Kavveri Telecom Products Limited and Another ______ Respondent(s).
Criminal Appeal No. 602 of 2022 (@ Special Leave Petition (Criminal) No. 6486/2019), decided on April 11, 2022
The Order of the court was delivered by
Order
1. Leave granted.
2. The impugned order quashes prosecution under Sections 9 and 9-AA of the Central Excise Act, 1944 on the ground that the Customs, Excise and Service Tax Appellate Tribunal, Bengaluru (the “CESTAT”) has granted stay on the recovery of the tax and penalty amount.
3. It is an accepted and admitted case that the appeal preferred by the respondents is pending before the CESTAT and has not been adjudicated and decided. We also examined the stay order which directs the appellant therein, namely, M/s Kavveri Telecom Products Limited, to make pre-deposit of Rs. 15 lakhs. Therefore, there is no exoneration or finding on merits by the CESTAT on the subject matter of the criminal complaints. In the said facts, the High Court was incorrect and wrong in quashing the criminal prosecution only on the ground that the tribunal has granted stay, subject to condition of pre-deposit, of the recovery of the tax and the penalty amount.
4. For the aforesaid reasons, we allow the present appeal and set aside the impugned order dated 10.01.2019 passed in Criminal Petition No. 5212 of 2012 titled “Kavveri Telecom Products Limited v. Additional Commissioner of Central Excise (Legal), Bangalore” quashing the criminal complaint in C.C. No. 332 of 2011.
5. We, however, clarify that it will be open to the respondents to file an application seeking exemption from personal appearance as well as under Section 309 of the Code of Criminal Procedure, 1973. If any, such applications are filed, the same would be considered and decided in accordance with the law. We have not made any comments in that regard. We also request the CESTAT to take the appeal preferred by the respondents expeditiously.
6. Pending application, if any, are also disposed of.
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