2005 (3) TMI 812 - HC - Customs

Summary

Issues Involved:
1. Validity of the detention order under Section 3(1)(i) and Section 3(1)(iii) of COFEPOSA.
2. Applicability of Section 5-A of COFEPOSA.
3. Subjective satisfaction of the Detaining Authority.
4. Sufficiency of materials to support the detention order.

Issue-wise Detailed Analysis:

1. Validity of the Detention Order under Section 3(1)(i) and Section 3(1)(iii) of COFEPOSA:
The petitioner challenged the detention order dated 3-11-2004 issued against the detenu under Section 3(1)(i) and (iii) of COFEPOSA. The detenu was intercepted with foreign currency equivalent to Rs. 40,08,244.50, which was seized under the Customs Act, 1962. The petitioner argued that there was no material to justify the satisfaction of the Detaining Authority under Section 3(1)(iii), which relates to preventing the detenu from transporting or concealing smuggled goods. The respondents contended that the detenu's activities, including acquiring and carrying smuggled currency, justified the detention under both heads.

2. Applicability of Section 5-A of COFEPOSA:
The petitioner argued that Section 5-A, which allows for the detention order to be sustained on multiple grounds even if one is defective, does not apply to defective heads of detention. The respondents argued that the detention order under each head is independent, and the failure of one head does not invalidate the entire order.

3. Subjective Satisfaction of the Detaining Authority:
The petitioner contended that the Detaining Authority did not have sufficient material to justify the subjective satisfaction required for issuing the detention order under Section 3(1)(iii). The respondents argued that the detenu's activities, including carrying undeclared foreign currency, justified the detention under both heads.

4. Sufficiency of Materials to Support the Detention Order:
The court examined whether the materials before the Detaining Authority were sufficient to support the detention order under Section 3(1)(i) independently of Section 3(1)(iii). The grounds of detention included the detenu's attempt to smuggle foreign currency out of India without declaring it to customs authorities, which was confirmed by the detenu's statement under Section 108 of the Customs Act.

Judgment Summary:
The court held that the Detaining Authority is empowered to issue a detention order on one or more heads under Section 3 of COFEPOSA. If an order is issued on multiple heads, the grounds must support each head independently. The court rejected the general proposition that the failure of one head invalidates the entire order. It emphasized that subjective satisfaction must be based on the materials before the Detaining Authority, and each case must be assessed individually.

The court found that there were sufficient materials to support the detention order under Section 3(1)(i) independently of Section 3(1)(iii). The detenu was found carrying undeclared foreign currency, which justified the detention under the head of "smuggling of goods." Therefore, the order under Section 3(1)(i) was valid, even if the order under Section 3(1)(iii) was not sustainable.

Conclusion:
The petition was dismissed, and the detention order was upheld based on the valid grounds under Section 3(1)(i) of COFEPOSA. The court found no justification for interference in the impugned order of detention.