2016 (7) TMI 1366 - HC - Customs

Bail application - smuggling - foreign origin cigarettes - Held that - without expressing any opinion on the merit of the case, let the applicant Nazim Ali Khan, involved in complaint case No.01 of 2015, under Sections132, 135(1)(A), 135(1)(B) of Customs Act, police station D.R.I. Noida, be released on bail on his furnishing a personal bond and two local sureties each of the like amount to the satisfaction of court concerned - applicant to be released on bail on fulfillment of conditions imposed - bail application allowed.

Summary

Issues: Alleged involvement in smuggling of foreign origin cigarettes, complicity in Customs Act violations, bail application rejection

Issue 1: Alleged involvement in smuggling of foreign origin cigarettes
The judgment involves a case where the applicant was implicated in a smuggling case related to foreign origin cigarettes. The prosecution alleged that the applicant, along with other accused, was involved in storing and importing foreign cigarettes in the guise of genuine import of scrap and other goods. Specific intelligence information implicated several individuals, including the applicant, in the syndicate involved in smuggling. The prosecution contended that the applicant, as a partner in a company where the smuggled cigarettes were stored, was responsible for the acts and omissions related to the offense. Statements of co-accused and evidence pointed towards the applicant's complicity in the offense, causing a substantial loss of custom duty. The prosecution argued that the applicant was part of a planned strategy to defraud the national exchequer, misusing the SEZ scheme for smuggling activities.

Issue 2: Complicity in Customs Act violations
The judgment detailed the contentions raised by both the applicant and the prosecution regarding the applicant's alleged involvement in violating the Customs Act. The applicant's counsel argued that the applicant was falsely implicated, had no knowledge of the imported cigarettes, and was not involved in their storage or importation. It was highlighted that the applicant's statement under Section 108 of the Custom Act was recorded under pressure and without his admission of guilt. The prosecution, on the other hand, presented evidence suggesting the applicant's knowledge of the smuggling activities and his active participation in the offense. The prosecution contended that the applicant, being a partner in the company where the smuggled goods were found, was liable for the offense committed, emphasizing the applicant's role in the well-planned strategy to defraud the exchequer.

Issue 3: Bail application rejection
The judgment concluded by granting bail to the applicant, Nazim Ali Khan, involved in the complaint case under Sections 132, 135(1)(A), 135(1)(B) of the Customs Act. The court imposed specific conditions for the bail, including filing an undertaking not to seek adjournments during the trial, mandatory presence in court, surrender of passport, and consequences for misuse of bail. The court, without expressing any opinion on the case's merit, considered the facts and circumstances before granting bail to the applicant. The conditions imposed aimed to ensure the applicant's compliance with the legal proceedings and prevent any misuse of the liberty granted through bail.