2010 (12) TMI 1273 - HC - Customs

Summary

Issues Involved:
1. Anticipatory Bail Application
2. Alleged Illegal Removal of Goods
3. Violation of Customs Act Provisions
4. Duty Evasion and Penalties

Summary:

1. Anticipatory Bail Application:
The petitioner, the Managing Director of M/s. Jai Bhawani Steel Enterprises Limited, sought anticipatory bail in connection with proceedings in F.No.S.Misc.154/2010 SIIB. The petitioner apprehended arrest for alleged offenses u/s 132 and 135 of the Customs Act, 1962.

2. Alleged Illegal Removal of Goods:
The respondent alleged that M/s. Jai Bhawani Steel Enterprises Limited and M/s. SDS Steel Private Limited illegally removed imported materials from their bonded warehouses without paying customs duty. The respondent's investigation revealed significant discrepancies between the declared quantities and the actual quantities found during inspection, indicating illegal removal of goods valued at approximately Rs. 63.36 crores, with a duty evasion of Rs. 11.18 crores.

3. Violation of Customs Act Provisions:
The respondent stated that the companies violated Section 62(2), Section 68, and Section 71 of the Customs Act, 1962, by removing goods without proper clearance and without filing ex-bond bills of entry or paying the necessary duties and charges. The companies were also accused of not maintaining proper stock records as required by their bonded warehouse licenses.

4. Duty Evasion and Penalties:
The respondent argued that the goods were liable for confiscation u/s 111(j) of the Customs Act, 1962, and the importer was liable for penalties u/s 112(a). The respondent's investigation indicated that the petitioner and his companies had evaded customs duty and interest, and the petitioner had absconded, failing to respond to summons.

Court's Decision:
The court, considering the serious nature of the offense, the high revenue stakes involved, and the petitioner's failure to cooperate with the investigation, denied the anticipatory bail. The court emphasized the need for custodial interrogation and dismissed the Criminal Original Petition.