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TMI Blog2015 (8) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... icences and failed to meet the export obligation fixed at the time of import of the machineries and managed to get the export obligation discharge certificate (EODC) by adopting fraudulent methods, the Directorate of Revenue Intelligence (DRI) visited the above textile mill on 14.8.2014 and verified the records and machineries imported under EPCG Scheme. Under mahazar proceedings, the machineries imported under EPCG licence Nos.3230009062 dated 9.2.2007, 3230014306 dated 19.1.2010, 3230016822 dated 1.6.2011 and 3230018441 dated 26.10.2012 all valued at Rs. 4,96,25,720/- with duty foregone of Rs. 1,06,48,442/- and indigenously procured machineries under EPCG licence No.3230018441 dated 26.10.2012, valued Rs. 1,09,20,300/- with the duty foregone of Rs. 13,49,747/- were seized under Customs Act, 1962, on seeing that the textile mill never made a single export so far and the export obligation was shown to have met out by collecting and submitting the shipping bills of certain other parties, who had no business connection, link or relationship with the respondent. (b) A statement dated 14.8.2014 was recorded from the Director of M/s.P.V.Spinning Mill India (P) Ltd., under Section 108 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent has become wrong and the respondent is liable to pay differential duty amount of Rs. 4,12,37,333/- both Customs and Central Excise duty, along with appropriate interest from the date of import / procurement of machineries. Further, as the respondent has not exported the goods to the value of Rs. 33,92,22,782/-, he has brought loss to the reserve of foreign exchange of the nation by not realizing the foreign exchange equivalent value of Rs. 33,92,22,782/-. (d) The case against the respondent is that because of his fraudulent methods adopted to obtain Export Obligation Discharge Certificate, there is a loss of Rs. 4.12 Crores to the Government of India and in other words, the issue is about safeguarding Rs. 4.12 crores of public money. The respondent filed an anticipatory bail petition before the learned Principal District and Sessions Judge, Coimbatore on 16.12.2014 in Crl.M.P.No.3860 of 2015. The petitioner has also filed a suitable counter affidavit to the said anticipatory bail petition. However, after a period of nearly two months, the learned Principal District and Sessions Judge, Coimbatore granted anticipatory bail to the respondent with a condition that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter 30: Offences and Penal Provisions of the Customs Manual of Central Board of Excise and Customs issued on 2.2.2012, deals with prosecution, which says that no prosecution proceedings can be launched in a Court of Law against any person under Customs Act and no cognizance of any offence under Sections 132 to 135 of the Customs Act, 1962 can be taken by any Court, except with the previous sanction of concerned Commissioner of Customs. Hence, based upon the results of investigations and evidence brought on record, the Commissioners of Customs apply their mind before sanctioning prosecution and after being satisfied that there are sufficient reasons justifying prosecution, then a criminal complaint could be filed. Therefore, the reason assigned by the Court below that the prosecution is not mandatory under the Customs Act, 1962 is not correct. Similarly, it is also not correct that the petitioner has seized all the machineries of the respondent to address its claim. Similarly, the petitioner has not seized all the documents and other papers, since the respondent is not cooperating with the investigation. Only if custodial interrogation is given, the petitioner can seize all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preme Court Cases 349 - Dolat Ram and others v. State of Haryana, wherein it has been held as follows:- "Rejection of bail in a non-bailable case at the initial stage and the cancellation of bail already granted, have to be considered and dealt with on different basis. Very cogent and overwhelming circumstances are necessary for an order directing the cancellation of bail already granted. Generally speaking, the grounds for cancellation of bail broadly (illustrative and not exhaustive) are: interference or attempt to interfere with the due course of administration of justice or evasion or attempt to evade the due course of justice or abuse of the concession granted to the accused in any manner. The satisfaction of the court, on the basis of material placed on the record of the possibility of the accused absconding is yet another reason justifying the cancellation of bail. However, bail once granted should not be cancelled in a mechanical manner without considering whether any supervening circumstances have rendered it no longer conducive to a fair trial to allow the accused to retain his freedom by enjoying the concession of bail during the trial." 9. In the decision reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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