1996 (6) TMI 87 - HC - Customs

Summary

Issues Involved:
1. Jurisdiction and Discretion of the Writ Court under Article 226 of the Constitution.
2. Fair Play and Fair Treatment in Governmental Actions.
3. Validity of Summons Issued under Section 108 of the Customs Act.
4. Provisional Assessment and Authority of Revenue Intelligence.
5. Cause of Action for Invocation of Writ Jurisdiction.

Issue-wise Detailed Analysis:

1. Jurisdiction and Discretion of the Writ Court under Article 226 of the Constitution:
The judgment emphasizes that the remedy under Article 226 of the Constitution is extraordinary and discretionary. The High Court has the widest possible amplitude in exercising its power, but it cannot intervene or interfere without an infringement of a right. There must be a breach of a right, if not a legal right, for the Writ Court to exercise its jurisdiction.

2. Fair Play and Fair Treatment in Governmental Actions:
The judgment underscores the principle that all governmental actions must adhere to fair play and fair treatment. Any departure from this principle can invoke the jurisdiction of the Writ Court. The Supreme Court of New South Wales and Megarry, J. in Bates v. Lord Hailsham have articulated fairness as a guiding principle in administrative actions.

3. Validity of Summons Issued under Section 108 of the Customs Act:
The judgment scrutinizes the issuance of summons under Section 108 of the Customs Act. The summons were issued for making inquiries in connection with the import of goods, not smuggling, as the word 'smuggling' was penned through in the notice. Section 108 allows a customs officer to summon any person to give evidence or produce documents in connection with the smuggling of goods. The court noted that the term 'smuggling' is defined under Section 2(39) of the Act and relates to acts rendering goods liable to confiscation under Section 111 or 113. Since the goods were not properly imported and no import license was produced, the Revenue Intelligence's inquiry was justified under Section 108.

4. Provisional Assessment and Authority of Revenue Intelligence:
The judgment clarifies that provisional assessment lacks finality, and the Revenue Intelligence has the authority to make further inquiries. The Customs Act allows for provisional assessments, and the Directorate of Revenue Intelligence is authorized to investigate importations under specific notifications. The court held that the Revenue Intelligence's actions were within the scope of the statute, aimed at ensuring proper duty payment and preventing unauthorized importation.

5. Cause of Action for Invocation of Writ Jurisdiction:
The court concluded that the petitioner had no cause of action to invoke the Writ Court's jurisdiction under Article 226. The notice issued by the Revenue Intelligence did not impose any liability but merely sought information. There was no injury or breach of rights to warrant the Writ Court's intervention. The court emphasized that statutory inquiries should not be interfered with unless it is evident that the petitioner should not face any difficulty.

Conclusion:
The High Court set aside the order of the learned Single Judge, dismissed the writ petition, and directed the petitioner to produce the required documents to the Directorate of Revenue Intelligence. The court held that the assumption of jurisdiction by the learned Single Judge was misplaced and unwarranted, as there was no breach of rights or cause of action for the petitioner to invoke the Writ Court's jurisdiction. The stay application succeeded, and the appeal was disposed of, with no order as to costs.