SHIV NARAYAN DHINGRA, J.

( 1 ) BY this petition under Section 482 Cr. P. C. , the petitioners have prayed for quashing of FIR NO. 187 dated 16. 7. 2005 under Sections 406/420/471 of IPC, Section 50 of Delhi Sales Tax Act and Section 9 of central Sales Tax Act, registered at Police Station Naraina.

( 2 ) BRIEF facts relevant for purpose of deciding this petition are that the petitioner No. 1 is a company and petitioner No. 2 is Managing Director of this company. The petitioner company has been manufacturing and dealing in consumer home products and filing sales tax returns in respect of Central sales Tax and State Sale Tax. During survey of the petitioners returns, it was found that the petitioner reflected sales of consumer goods to the tune of Rs. 5,24,08,355/- as exempted sales to US Embassy against exemption certificates, during assessment years 2000-01 and sale of consumer goods worth Rs. 5. 62 crores as exempted sale against exemption certificates during 2001-02. The petitioners submitted nine sales tax exemption certificates purportedly issued by US Embassy. During the course of investigation it was found that no exemption certificate was ever issued by US Embassy and no sale was made to US Embassy by the petitioners. The petitioners forged the exemption certificates purportedly issued by US Embassy to the following effect:

. STEC DATED FOR THE GOODS RECEIVED DURING THE MONTH AMOUNT (IN RS.) 1. 4919 11/04/02 APRIL 2001 1,84,50,000 2. 4920 11/04/02 JULY, AUG. SEPT. 2001 1,74,45,000 3. 4921 11/04/02 OCTOBR NOVEMBER DECEMBER 2001 2,03,65,000 TOTAL EXEPTION CLAIMED DURING 2001-02 5,62,60,000 4. 2763 10/04/01 MAY & JUNE 2000 17,68,850 5. 2764 10/04/01 JULY, AUGUST SEPTEMBER 2000 1,12,33,625 6. 2766 10/04/01 JANUARY 2001 1,17,04,680 7. 2765 10/04/01 OCTOBER NOVEMBER 2000 89,21,380 8. 2768 10/04/01 MARCH 2001 88,64,780 9. 2767 10/04/01 FEBRUARY 2001 99,04,940 TOTAL EXEMPTION CLAIMED DURING 2000-01 5,23,98,255 GRAND TOTAL 10,86,58,255

( 3 ) THE inquiry also revealed that the petitioners had collected Central sales Tax at the rate of 4% from the buyers and despite collecting huge amount of tax from the buyers, did not deposit the same with the Sales Tax department. The petitioners also caused wrongful loss of 6% of the local sales tax by submitting forged sales tax exemption certificates purportedly issued by US Embassy. The petitioners thus caused a wrongful loss to the tune of Rs. 2,64,12,216/- to the Public Exchequer. The above FIR was registered against the petitioners on 16. 7. 2005 under abovestated sections for these reasons.

( 4 ) THE petitioners in this petition contended that the petitioner No. 2, being the managing director was mentally disturbed during the relevant period due to severe illness. e. , bone marrow cancer, of his wife, to which she scummed finally. During this period, the staff was managing the business and may have committed irregularities. The petitioner No. 2, due to mental disturbance, was not able to attend to the business affairs properly and was signing papers without verifying on blind faith of the staff. The accountant, who used to pursue matters with sales tax department suddenly left the job and the petitioner came to know about the alleged offence only when petitioner received ex parte assessment orders. Thereafter, the petitioner company filed appeals and deposited various amounts totaling to Rs. 1. 15 crores as directed by the Sales Tax Tribunal under Central Sales Tax and Rs. 73 lacs under local sales tax as directed by the Appellate Authorities. The appeals against the assessment orders were pending before the Additional Commissioner, It is not pleaded by the petitioners that actual sales were made to US Embassy or that forged exemption certificates were not used to seek tax exemption illegally.

( 5 ) THE quashing of FIR is sought on the ground that the alleged offence committed by the petitioners was not covered under Sections 4