2015 (10) TMI 2127 - HC - Customs

Whether the authorities under Customs have power to detain passport of a person against whom proceedings are initiated under Customs Act, 1962? Petitioner granted bail on conditional surrender of passport while executing bond Held That - Customs Authorities have power to detain the passport only if it is relevant for any enquiry; reasons for detention have not been stated as such If no reasons found for the detention, same shall be handed over to the assessee Decided conditionally in favour of assessee.

Summary

Issues:
Whether Customs Authorities have the power to detain a passport of a person against whom proceedings are initiated under the Customs Act, 1962.

Analysis:
The case involved a petitioner who was granted bail by the customs authority under certain conditions, one of which was to surrender his passport. The petitioner was later intercepted by customs officers for attempting to smuggle metallic objects. The main issue before the court was the authority of Customs Authorities to detain a passport. The petitioner argued that Customs Authorities lacked the power to detain passports, citing a judgment from the Madras High Court. However, the court noted that the Passports Act, 1967 is a self-contained Act, and Customs Authorities do not have the power to impound passports.

The Customs Authorities, on the other hand, relied on judgments from the Kerala High Court to support their position that they have the power to detain passports under Section 110(3) of the Customs Act. The court acknowledged that Customs Authorities can detain a passport if it is relevant to any inquiry or proceedings under the Customs Act. However, the court emphasized that the authorities must provide reasons for detaining or retaining the passport, as the right to travel is a fundamental right that can only be restricted with valid reasons.

In light of the arguments presented, the court issued specific directions to the Customs Authorities. They must state reasons for retaining a passport under Section 110(3) of the Customs Act. If the passport is not required for any proceedings under the Customs Act, it must be returned to the petitioner promptly. The court mandated that a decision regarding the passport must be made within one week from the date of the judgment. The writ petition was disposed of accordingly, with no costs imposed.