PART II
ARREST AND PROSECUTION
- Arrest
1.1 Provisions for arrest are contained in Sections 13 and 18 of
Central Excise Act, 1944. These provisions provide for power to arrest,
searches and arrests how to be made, disposal of persons arrested, procedure
to be followed.
1.2 Any Central Excise Officer not below the rank of Inspector can arrest
any person under Section 13 whom he has reason to believe that he is liable
to punishment under the Central Excise Act. In normal circumstances, prior
approval of Commissioner will be taken before arresting a person.
1.3 The arrested person shall be produced before the Jurisdictional
Magistrate or the Chief Judicial Magistrate, as the case may be, within
twenty-four hours of the arrest.
1.4 Power to grant bail is normally to be exercised by a Jurisdictional
Magistrate.
- 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 Section 9 of the Central Excise Act, 1944, provides for prosecution of
offenders in a court of law and prescribes a minimum imprisonment of six
months. However, in cases where the duty involved is more than one lakh or
the offender has been convicted previously under this section, the court can
award maximum imprisonment for a term not exceeding seven years.
2.3 Prosecution proceedings in a Court of Law are generally initiated after
departmental adjudication of an offence has been completed. However,
prosecution may be launched even where adjudication is not complete.
2.4 Generally, the adjudicator should indicate whether a case is fit for
prosecution, though this is not a necessary pre-condition.
2.5 Confiscation and penalty in departmental adjudication and prosecution in
criminal proceedings are independent and do not amount to double jeopardy.
2.6 Prosecutions are launched in cases of serious nature and where
sufficient evidence to prove fraudulent intention is available. Under
executive instructions the Chief Commissioner of Central Excise or in
specified cases the Director General of Central Excise Intelligence, has
power to sanction prosecution.