2012 (12) TMI 889 - HC - Customs

Concealment of medicinal powder in the Shampoo and Talcum Powder bottles - confiscation order & penalty - Held that - Another Single Judge of this Court in a petition filed by the mother of petitioner Mrs. Chinta Devi in Chinta Devi Vs. Rajesh Arora Air Custom Officer 2011 (7) TMI 986 - DELHI HIGH COURT had quashed the proceedings in the aforesaid criminal complaint on the ground that her exoneration by the Joint Secretary, Government of India, had attained finality. Joint Secretary to the Government of India has accepted the contention of the petitioner that she had no knowledge about the substances in the aforesaid shampoo and talcum powder bottles, therefore, in this case there cannot be any mens rea since the petitioner had no knowledge about the substance found in the aforesaid bottles. The Joint Secretary has maintained the order of confiscation and the same has not been challenged by the petitioner since the said two bottles were of the substances which are not permissible to be given to the petitioner. Under the Customs Act, 1962 there is complete restriction on the aforesaid substance, which the petitioner has brought from Hong-kong, without her knowledge, therefore, her state of mind cannot be said to be having an intention to import or smuggle the aforesaid substance - Thus in the present case the criminal proceedings pending before the trial court cannot go on, against the petitioner, since the petitioner has been fully exonerated by the Joint Secretary to the Government of India, and same has attained the finality.

Summary

Issues:
1. Challenge to order under Sections 132 and 135 of the Customs Act, 1962.
2. Discharge order by Additional Chief Metropolitan Magistrate.
3. Exoneration by Joint Secretary, Government of India.
4. Interpretation of Section 138A of the Act, 1962.
5. Quashing of criminal proceedings based on exoneration in adjudication proceedings.

Detailed Analysis:
1. The petitioner challenged the order dated 25th November, 2010, passed by the Additional Sessions Judge, seeking to quash the proceedings pending before the Additional Chief Metropolitan Magistrate under Sections 132 and 135 of the Customs Act, 1962. The petitioner was discharged by the Additional Chief Metropolitan Magistrate, but the Special Judge set aside the discharge order, leading to the filing of the present petition.

2. The petitioner was intercepted at the IGI Airport, New Delhi, in possession of Desxamethasone powder. The powder was confiscated under the Customs Act, 1962, and penalties were imposed. However, upon revision petitions, the petitioner and his mother were exonerated by the Joint Secretary, Government of India, due to lack of knowledge and mens rea regarding the concealed powder.

3. The petitioner's counsel argued that since the petitioner had been exonerated in adjudication proceedings, criminal prosecution under Sections 132 and 135(1)(a) of the Act, 1962, was unwarranted. The respondent's counsel relied on Section 138A of the Act, which presumes a culpable mental state but allows the accused to prove otherwise.

4. The Court analyzed Section 138A and a previous judgment quashing proceedings for the petitioner's mother based on exoneration. The Court emphasized the importance of exoneration in adjudication proceedings and its impact on criminal prosecution, citing relevant case law and principles regarding the continuation of criminal proceedings post-exoneration.

5. Referring to the Supreme Court's judgment in a similar context, the Court held that if exoneration in adjudication proceedings is based on merits and innocence, criminal prosecution on the same facts should not continue. The Court found the issue raised by the respondent to be covered by previous judgments and quashed the impugned order, setting aside the criminal proceedings against the petitioner.

By thoroughly analyzing the issues involved in the judgment, the Court provided a detailed explanation of the legal principles and precedents governing the exoneration in adjudication proceedings and its impact on criminal prosecution under the Customs Act, 1962.