Prosecution:

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.

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 fifty lakh or the offender has been convicted previously under this section, the court can award maximum imprisonment for a term not exceeding seven years.

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. Generally, the adjudicator should indicate whether a case is fit for prosecution, though this is not a necessary pre-condition.

Confiscation and penalty in departmental adjudication and prosecution in criminal proceedings are independent and do not amount to double jeopardy.

Prosecutions are launched in cases of serious nature and where sufficient evidence to prove fraudulent intention is available. Under executive instructions the Principal Chief Commissioner/ Chief Commissioner of Central Excise or in specified cases the Director General of Central Excise Intelligence, has power to sanction prosecution.