1992 (9) TMI 361 - HC - Customs

Summary

Issues:
1. Quashing of complaint/proceedings under Sections 132 and 135 (1) (a) of the Customs Act, 1962.
2. Exoneration of the petitioner by the Collector of Customs.
3. Legal sustainability of prosecution proceedings under Sections 132 and 135 (1) (a) of the Customs Act.

Analysis:
1. The petitioner, upon arrival at the IGI Airport, was found in possession of 6 gold biscuits and US $31,552 without declaration, leading to his arrest by Customs officers. Subsequently, a complaint was filed against him under Sections 132 and 135 (1) (a) of the Customs Act, 1962. The petitioner argued that he had validly acquired the gold and produced supporting documents. The Deputy Collector confiscated the items and imposed a penalty, which was later set aside by the Collector. The charge of smuggling against the petitioner was deemed unsustainable due to lack of evidence, leading to the petition to quash the proceedings.

2. The Collector of Customs, while disposing of the appeal, found no evidence of smuggling activity on the part of the petitioner, exonerating him of the charges. The petitioner's counsel argued that since the Collector found no mens rea on the petitioner's part, prosecution under Sections 132 and 135 (1) (a) of the Customs Act was unwarranted. The court concurred with this view, emphasizing the petitioner's exoneration and the absence of criminal intention, rendering the complaint non-maintainable.

3. The court highlighted the principle that if an appellate authority exonerates an individual based on the same facts and evidence, pursuing criminal prosecution on the same grounds is unjustifiable. Citing precedents, the court emphasized that the department cannot claim criminal liability when the adjudication proceedings found no basis for prosecution. As the petitioner had been exonerated by the Collector, the court quashed the complaint, deeming it futile and unsupported by evidence. The judgment underscored the importance of consistency in findings between adjudication and criminal proceedings, leading to the dismissal of the prosecution against the petitioner.