2021 (2) TMI 409 - HC - Customs

Grant of Bail - Smuggling - Gold Bars - reason to believe present or not - HELD THAT - As per Section 104(1) of the Customs Act if a person has committed offence inter alia under Section 135 of the said Act he may be arrested. Coming to Section 135(1)(b)(i) (A) of the Act if the market price of the goods exceeds 1 crore the same is punishable with imprisonment for a term which may extend to 7 (seven) years and with fine and as such such an offence is non-bailable - Mr. Purkayastha has submitted that the value of the gold so seized is less than 1 crore as per the value of gold found and collected from the website. However it has been found from the complaint/bail objection placed before this Court by the DRI that the gold was weighed by the registered goldsmith and the value of the seized gold was Rs. 1, 01, 94, 450/-. In the absence of any material to show that ascertainment of the value of the seized gold is not legally valid/correct there is no reason to disbelieve the value ascertained by the registered goldsmith. Accordingly the offence is covered by Section 135(1)(b)(i)(A) of the Customs Act. In the instant case so far the materials collected it was a smuggled gold and no duty was paid for that - Whatever it may be from the materials on record and on hearing the rival submissions made by the respective learned counsel for the parties this Court is of the view that this is not a fit case to grant bail to the petitioner at this stage as there are materials collected during the investigation of the case that the petitioner had in his possession four gold bars weighing 1995.00 grams and valued at Rs. 1, 01, 94, 450/- covering the case by the provision of Section 135(1)(b)(i)(A) of the Customs Act. Bail application dismissed.

Summary

Issues Involved:
Bail application under Section 439 of Cr.PC for contravention of Sections 7(1) and 11 of the Customs Act, 1962 - Seizure of gold bars - Alleged involvement in gold smuggling syndicate - Legal validity of arrest without warrant under Section 104 of the Customs Act - Determination of the value of seized gold bars - Applicability of case laws in the context of smuggling - Granting of bail.

Detailed Analysis:

1. Bail Application and Offences: The petitioner sought bail under Section 439 of the Cr.PC in connection with contravention of Sections 7(1) and 11 of the Customs Act, 1962, punishable under Section 135 of the same Act. The petitioner, Sri Radhey Shyam Soni, was apprehended while carrying four gold bars without valid documents, allegedly smuggled into India from neighboring countries.

2. Seizure and Investigation: The Directorate of Revenue Intelligence (DRI) intercepted the petitioner based on specific intelligence input. The petitioner admitted to carrying four gold bars concealed in his vest, which were seized and found to be of high purity after examination by a registered goldsmith. The value of the seized gold bars was ascertained to be Rs. 1,01,94,450.

3. Involvement in Smuggling Syndicate: The petitioner confessed to his involvement in a gold smuggling racket and previous trips carrying smuggled gold of foreign origin. Two other individuals from the same syndicate were also apprehended with gold bars, further implicating the petitioner in the smuggling operation.

4. Legal Validity of Arrest: The petitioner argued that his arrest without a warrant was not justified under Section 104 of the Customs Act. However, the court examined the provisions of Section 104, including Sub-section 4, and determined that the offences involved, including under Section 135, were non-bailable due to the value of the seized gold exceeding Rs. 1 crore.

5. Value Determination and Case Laws: The petitioner contested the value of the seized gold, but the court upheld the value ascertained by a registered goldsmith. The court also analyzed the applicability of case laws cited by the petitioner, emphasizing that the materials collected by the DRI indicated the gold was smuggled, making the cited cases irrelevant to the present situation.

6. Decision on Bail: After considering the materials on record and arguments from both sides, the court concluded that it was not a suitable case to grant bail to the petitioner at that stage. The court highlighted the petitioner's possession of the gold bars, weighing 1995.00 grams and valued at Rs. 1,01,94,450, falling under the purview of Section 135(1)(b)(i)(A) of the Customs Act.

7. Final Order: The court rejected the petitioner's prayer for bail and disposed of the petition accordingly, instructing the return of the case diary.

This detailed analysis of the judgment provides a comprehensive overview of the legal issues, factual background, arguments presented, and the court's decision regarding the bail application in the context of gold smuggling allegations under the Customs Act, 1962.