2011 (11) TMI 647 - HC - Customs

Summary

Issues:
Quantification of damages against a Custom official for alleged loss during official functions, effectiveness of investigation by Director of Revenue Intelligence, involvement of third parties in the case, direction for Central Bureau of Investigation (CBI) investigation, appropriate departmental action against responsible individuals, interim order conditions.

Quantification of Damages:
The appeal was admitted to determine the basis for quantifying damages against a Custom official for loss incurred during the discharge of official duties. The Tribunal found dereliction of duty concerning fake exports, prompting the need for investigation into the matter. The departmental representative acknowledged limitations in investigating the issue and suggested the CBI's involvement for an effective inquiry. Consequently, the court directed the Director of the Eastern Region, CBI, to commence an investigation and submit a report within three months. The Commissioner of Custom was also directed to take appropriate departmental action against involved individuals, with the investigation outcome pending the appeal's disposal.

Effectiveness of Investigation:
The court accepted the department's submission regarding the inadequacy of the Director of Revenue Intelligence to conduct a detailed investigation due to infrastructure constraints and the potential involvement of third parties. Acknowledging these limitations, the court directed the CBI to investigate the matter promptly and identify the officials and persons responsible for the fake export issue. The court emphasized the need for appropriate proceedings based on the investigation's findings, with the Commissioner of Custom instructed to take necessary departmental action against the implicated individuals.

Interim Order Conditions:
An unconditional stay of the impugned judgment and order was granted for a fortnight, provided the appellant deposited Rs. 10,000 with the Commissioner of Custom. Failure to make this deposit would result in the vacation of the interim order. The court emphasized the importance of complying with the interim order conditions and highlighted the significance of the investigation and departmental actions in relation to the pending appeal. The application for interim relief was disposed of, with all relevant parties directed to act upon the court's orders.