2017 (10) TMI 817 - HC - Customs

Grant of bail - Smuggling - heavy quantity of foreign origin cigarettes - declaration made as import of scrap and other goods - Held that - Upon hearing learned counsel for the parties, perusal of record and considering the complicity of accused, severity of punishment as wall as totality of the facts and circumstances, at this stage without commenting on merits of the case, I do not find it a fit case for grant of bail to the two applicants - bail application rejected.

Summary

Issues: Alleged unauthorized import of foreign origin cigarettes under the garb of scrap import; Bail applications of two accused partners.

Analysis:
- The prosecution case involves allegations of unauthorized import of foreign origin cigarettes by accused partners of various firms under the guise of importing scrap and other goods.
- The Directorate of Revenue Intelligence (DRI) conducted inspections at the premises of the accused firms and seized a significant quantity of foreign cigarettes.
- The accused were alleged to have smuggled foreign cigarettes worth crores without proper authorization or payment of custom duty, causing substantial financial loss to the government.
- The defense argued that the accused were falsely implicated, citing lack of direct involvement, presence, and knowledge of the alleged activities. They also claimed compliance with authorization procedures and raised issues regarding the admissibility of statements and the responsibility of a power of attorney holder.
- The defense further contended that no offense of evasion of custom duty was established within the Special Economic Zone (SEZ) area, where the firms were located.
- The prosecution opposed the bail applications, asserting collusion between the accused partners, their admission of guilt in voluntary statements, and their involvement in a planned syndicate for smuggling foreign cigarettes under false descriptions.
- The prosecution highlighted the substantial financial loss caused by the accused, their admission to importing cigarettes for others, and their alleged active participation in the illicit activities.
- After considering the arguments and the severity of the accusations, the court denied the bail applications for the accused partners, Shah Faisal and Munawwar Ali, in the Customs Act case, emphasizing the complexity of the case and the gravity of the alleged offenses.