2019 (10) TMI 1298 - HC - Customs

Bail Application - smuggling - Gold Bars - prohibited goods - Section 135 of the Customs Act, 1962 - HELD THAT - Upon perusal of the evidence brought on record as well as the complicity of the applicant, no good reason found to exercise any discretion in favour of the accused applicant. Thus, the bail application stands rejected at this stage. Application dismissed.

Summary

Issues:
Bail application under Section 135 of the Customs Act, 1962 for possession of smuggled gold bars.

Analysis:
The bail application was filed by the applicant seeking release in a case involving the recovery of five gold bars, allegedly smuggled from Bangladesh, under Section 135 of the Customs Act, 1962. The prosecution claimed that the applicant, along with a co-accused, was apprehended at the railway station with two gold bars in his possession, while three were recovered from the co-accused. The total weight of the gold bars was 4,996.05 grams, valued at ?1,67,36,767. The prosecution contended that the gold bars were brought to India in violation of customs laws and were liable to be confiscated under Section 111 of the Act. The applicant denied ownership of the gold bars and argued innocence, citing a Supreme Court judgment declaring similar offenses as bailable. The defense also emphasized the lack of criminal history and the applicant's continued detention since the date of arrest.

The opposing parties argued against granting bail, asserting that the applicant's innocence could not be determined at the pre-trial stage. They highlighted the admission by the accused of carrying smuggled gold bars and erasing identifying marks to avoid detection. Both accused were traveling together, and the recovery of gold bars from both was considered jointly. The prosecution cited provisions of the Customs Act, 1962, and the Foreign Trade Rules, contending that the recovered gold bars were prohibited goods, making the offense non-bailable under Section 104 (6) (c) and 104 (6) (d) of the Act. The absence of legal importation documents further weakened the applicant's case for bail.

After considering the arguments and evidence presented, the court rejected the bail application, finding no compelling reason to grant bail to the applicant at that stage. The decision was based on the applicant's complicity in the alleged offense, as evidenced by the material on record. The court clarified that the rejection of bail did not imply any judgment on the ultimate merits of the case, limiting the observations to the disposal of the bail application.