Anil Govindbhai Metaliya Vs State of Gujarat & 1 Other(S) (Gujarat High Court)
Gujarat High Court held that criminal proceedings in case of Central Excise Duty evasion quashed as there is no legally enforceable debt on the date of issuance of cheques.
Facts- The present applications are filed under section 482 of the Code of Criminal Procedure praying to quash and set aside Criminal Case Nos.18 of 2011, 613 of 2012, 614 of 2012 and 615 of 2012, which are filed under the provisions of Section 138 of Negotiable Instruments Act pending in the Court of the Additional Chief Metropolitan Magistrate.
Notably, the that the impugned complaints are filed for dishonour of the cheques. A search was carried out by the respondent no.2-Director General of Central Excise Intelligence at the premises of the applicant. Thereafter, the applicant was arrested in connection with the offence registered by the Central Excise Department for the offences punishable u/s. 9 of the Central Excise Act. The applicant had preferred bail application before the trial Court.
Considering the bonafide of the applicant and the merits of the case, the applicant was released on bail and no condition was imposed by the trial Court; and in view of the said fact, the applicant had issued 7(seven) cheques of different amounts totalling to Rs.2,50,00,000/-, when he was in the jail which were dishonoured and therefore a statutory notice was issued by the respondent no.2 and accordingly statutory notice was replied by the applicant contending that there was no assessment of the tax liability, no show-cause notice was issued and therefore, the issue of determination of the tax liability was pending at the time of deposit of cheques.
Conclusion- Held that at the end of the search operation the officials were able to collect something incriminating against the applicants as regards the evasion of the excise duty. However, it cannot be said that the cheques which were obtained by the department were towards the discharge of the existing enforceable debt or liability. The liability was yet to be determined by the competent authority under the provisions of the Act.
Held that there is no legally enforceable debt is found and considering the above judgment which is passed in identical facts and the ratio laid down on the aspect that there should be legally enforceable debt existing on the date of issuance as well as presentation of cheques. Accordingly, the proceedings of Criminal Case Nos.18 of 2011, 613 of 2012, 614 of 2012 and 615 of 2012, pending in the Court of the learned Additional Chief Metropolitan Magistrate, Court No.36, Ahmedabad and consequential proceedings pursuant thereto are hereby quashed qua the applicants.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Since the issues and facts involved in all these applications are the same, at the request of learned advocates for the parties, they are heard and disposed of together by this common judgment.
2. These applications are filed under Section 482 of the Code of Criminal Procedure (`the Code’ for short) praying to quash and set aside the Criminal Case Nos.18 of 2011, 613 of 2012, 614 of 2012 and 615 of 2012, which are filed under the provisions of Section 138 of Negotiable Instruments Act, (`the Act’ for short), pending in the Court of the learned Additional Chief Metropolitan Magistrate, Court No.36, Ahmedabad and consequential proceedings pursuant thereto.
3. Heard learned advocates for the parties.
4. Learned advocates Mr. Thackar for the applicant submitted that the impugned complaints are filed for dishonor of the cheques, the details of which are mentioned as under:
