Rongon Mukhopadhyay, J. - (1.) BY Court: Heard Mr. V.P. Singh, learned senior counsel appearing on behalf of the petitioners and Mr. Shekhar Sinha, learned counsel appearing for the State.
(2.) IN this application, the petitioners have prayed for quashing the entire criminal proceeding in connection with C/2 (Excise) Case No. 01 of 2003 including the order dated 10.07.2003 passed by the learned Special Judge (Economic Offence), Jamshedpur, whereby and whereunder, cognizance has been taken for the offences punishable u./s. 9 read with Section 9(AA) of the Central Excise Act, 1944. It appears that a complaint case was lodged by the Assistant Commissioner, Central Excise Division II, Jamshedpur being, the complainant (opposite party No. 2 herein), in which it was alleged, inter alia, that the petitioner No. 1 (the company) was asked by the Department of Central Excise (for short the Department) to furnish the prices charged from the Regional Sales Offices (RSOs) on sales of different models of Motor Vehicle Chassis (MVC) and other information for assessment of excise duty of MVCs, but the company did not furnish information and the Department had approved prices lists provisionally and assessment of the Companies MVCs manufactured and removed since April, 1981, were made provisionally. It was stated therein that the petitioner company in order to stall the investigation for final assessment, filed a writ petition being CWJC No. 802 of 1988 (R) before the Patna High Court (Ranchi Bench) and the same was allowed and it was held that the excise department could not call for information on prices charged from RSOs as the same were not relevant for passing final orders. However, the Hon'ble Court further directed to pass final orders on the basis of the given price lists. It also stated in the complaint petition that being aggrieved by the order passed in CWJC No. 802 of 1988, the Department preferred an appeal before the Hon'ble Supreme Court. The Hon'ble Supreme Court was pleased to set aside the said order of High Court vide order dated 10.11.1997 and it was observed that the Assistant Collector is entitled to complete the assessment as he thinks fit in exercise of his judgment and according to his understanding of the law and facts. Based on the order of the Hon'ble Supreme Court, investigation was initiated by the Department for obtaining relevant information and documents of the company for finalizing the assessment which remained provisional since the year 1981. It has been alleged that inspite of repeated approaches, the company in connivance with its officials delayed the investigation. It was also alleged that an investigation was conducted by the Department and the amount of central excise and the automobile cess evaded by the company was assessed and quantified. It was also alleged in the complaint petition that the petitioner No. 1, the company in connivance with the other accused persons who were its officials had suppressed and mis -declared the relevant facts and as such under assessed the excise duty of the MVCs for the period 1981 to 1998. On conclusion of the investigation and on receipt of the investigation report, the department issued demand -cum - show cause notice to the accused persons on 8.3.2001 to which reply was submitted on 10.5.2001, requesting the Commissioner, Central Excise, Jamshedpur to adjudicate the case himself as the amount involved was very high. The Commissioner, Central Excise, Jamshedpur after hearing the parties and considering all the facts on record, adjudicated the matter and assessed the amount and confirmed the complainant's demand for Rs. 1,53,43,68,025/ - and ordered to recover the same from the accused No. 1 and also imposed a penalty of Rs. 1,53,43,68,025/ -. Therefore, it was alleged by the complainant that the petitioner No. 1/company and its officials had meticulously planned to undervalue the finished goods and deliberately and willfully suppressed material facts during the investigation and thus have violated the provisions of rules 9, 52(A), 173(C), 173(F) and 173(G) of the Central Excise Rules 1944, thereby committing offence punishable u./s. 9 of the Central Excise Act, 1944.
(3.) AFTER the complaint was filed, a detailed order was passed on 10.7.2003 by the learned Special Judge (Economic Offence), Jamshedpur in C/2 Case No. 1/2003, whereby and whereunder, cognizance was taken for the offence punishable u./s. 9 of the r/w Section 9(AA) of the Central Excise act, 1944.;