CHAPTER 17

SEARCH, SEIZURE, ARREST AND PROSECUTION

PART-II

ARREST AND PROSECUTION
1. 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 personunder Section 13 whom he has reason to believe that he is liable to punishment underthe Central Excise Act. In normal circumstances, prior approval of Commissioner will betaken before arresting a person.

1.3 The arrested person shall be produced before the Jurisdictional Magistrate or theChief 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.

2. Prosecution

2.1 Besides the departmental adjudication, prosecution may also be launched underSection 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 thefirm, who is responsible for the conduct of the business of the company/firm and is foundguilty of the offences under the Central Excise Act/Rules.

2.2 Section 9 of the Central Excise Act, 1944, provides for prosecution of offenders ina court of law and prescribes a minimum imprisonment of six months. However, in caseswhere the duty involved is more than one lakh or the offender has been convictedpreviously under this section, the court can award maximum imprisonment for a term notexceeding seven years.

2.3 Prosecution proceedings in a Court of Law are generally initiated afterdepartmental adjudication of an offence has been completed. However, prosecutionmay 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 incriminal proceedings are independent and do not amount to double jeopardy.

2.6 Prosecutions are launched in cases of serious nature and where sufficientevidence to prove fraudulent intention is available. Under executive instructions theChief Commissioner of Central Excise or in specified cases the Director General ofCentral Excise Intelligence, has power to sanction prosecution

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