M/S Kavveri Telecom Products Limited vs Additional Commissioner Of Central ... on 10 January, 2019

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Karnataka High Court

M/S Kavveri Telecom Products Limited vs Additional Commissioner Of Central ... on 10 January, 2019

Bench: John Michael Cunha

                         1


IN THE HIGH COURT OF KARNATAKA AT BENGALURU

     DATED THIS THE 10TH DAY OF JANUARY, 2019

                      BEFORE

 THE HON'BLE MR. JUSTICE JOHN MICHAEL CUNHA

          CRIMINAL PETITION NO.5212/2012

BETWEEN:

1.     M/S KAVVERI TELECOM PRODUCTS LIMITED
       PLOT NO.31-36, AREKERE MICO LAYOUT
       BANNERGHATTA ROAD
       BENGALURU-560068
       REP BY ITS MANAGING DIRECTOR
       SRI SHIVAKUMAR REDDY

2.   SRI SHIVAKUMAR REDDY
     MANAGING DIRECTOR
     M/S KAVVERI TELECOM PRODUCTS LIMITED
     PLOT NO. 31-36, AREKERE MICO LAYOUT
     BANNERGHATTA ROAD
     BENGALURU-560068.
                                   ...PETITIONERS
(BY SRI RAGHAVENDRA K, ADVOCATE)

AND:

ADDITIONAL COMMISSIONER OF
CENTRAL EXCISE (LEGAL)
BENGALURU
OFFICE OF THE COMMISSIONER
OF CENTRAL EXCISE
C R BUILDINGS, QUEEN'S ROAD
P B NO. 5400
BENGALURU-560001
                                     ...RESPONDENT
(BY SRI. JEEVAN J NEERALGI, CGSC.)
                            2


     THIS PETITION IS FILED UNDER SECTION 482 CR.P.C
PRAYING TO SET ASIDE THE ORDER DATED 09.11.2011
PASSED IN C.C.NO.332/2011, DIRECTING REGISTRATION
OF A CASE AGAINST THE PETITIONERS FOR OFFENCES
WHICH ARE MADE PENAL U/S 9 AND 9AA OF CENTRAL
EXCISE ACT AND ORDERING PROCESS AGAINST THEM
FOR THEIR APPEARANCE IN THE CASE BEFORE THE
SPECIAL COURT (ECONOMIC OFFENCES), BENGALURU
AND   FURTHER     BE    PLEASED   TO   QUASH    THE
PROCEEDINGS THAT ARE BEING RECORDED IN THE
CASE.

     THIS PETITION COMING ON FOR ADMISSION THIS
DAY, THE COURT MADE THE FOLLOWING:

                      ORDER

Petitioners have sought to set aside the order dated 09.11.2011 passed by the Special Court for Economic Offences, Bengaluru, in C.C.No.332/2011 whereby the learned Magistrate has taken cognizance of the offence punishable under Sections 9 and 9AA of the Central Excise Act, 1944 (for short 'the Act') and has issued summons to the petitioners.

2. Learned counsel for the petitioners would primarily contend that as against the adjudication order passed by the Commissioner of Central Excise, the petitioners have preferred an appeal under Section 35A of the Act before the Customs, Excise and Service Tax 3 Appellate Tribunal, Bengaluru, in Appeal No.E/2098/2010, 1708-1710/2010 and by order dated 13.02.2012, the impugned recovery has been stayed by the Appellate Tribunal and hence, the prosecution initiated against the petitioners cannot be continued.

3. The learned counsel appearing for the respondent does not dispute the above factual submission.

4. Having regard to the fact that the recovery proceedings are seized of by the Appellate Tribunal, it is necessary that the criminal prosecution against the petitioners are initiated depending upon the decision of the Appellate Tribunal.

5. Accordingly, the petition is allowed. The impugned order dated 09.11.2011 in C.C.No.332/2011 is set aside. The proceedings initiated against the petitioners in C.C.No.332/2011 are quashed for the present reserving liberty to the respondent to initiate appropriate action depending upon the result of the 4 proceedings pending before the Customs, Excise and Service Tax Appellate Tribunal, Bengaluru, in Appeal No.E/2098/2010, 1708-1710/2010.

Petition is disposed of accordingly.

SD/-

JUDGE VP

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