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TMI Blog2024 (8) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... hich can be taken by any reasonable man, courts will be reluctant to interfere in such a situation. As has been seen from the impugned order, affidavits were not called for from the department, nonetheless in the appeal the authority has stated that the two summons were sent to the suppliers/traders at Imphal, Manipur from whom the writ petitioner is said to have purchased the goods and both the summons were returned undelivered with the postal endorsement addressee not known . Whether the appellant authority namely the authority of the Preventive Wing of the customs department had jurisdiction to seize the goods from the domestic cargo complex in the Netaji Subhas Chandra International Airport? - HELD THAT:- There is no aspect of customs functioning with which the preventive service is not directly or indirectly associated. The mannual states that the preventive officer of customs is the first to greet any visitor arriving in India and the last he has to see departure from India and in the process, he has to shoulder dual responsibility. On the one hand, he has conduct himself to the visitor as an ambassador of India. On the other, being a soldier in the economic front, he has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cured five metric tonnes of areca nuts, from a supplier at Imphal, Manipur under three GST invoices bearing nos. 630, 631 and 632 all dated February 05, 2024. The value of the consignment was declared as Rs. 34,16,765/- and they were despatched by air from Imphal under cover of three e-way bills dated February 05, 2024. The goods arrived at the Netaji Subhas Chandra International Airport, Kolkata on February 05, 2024. When the writ petitioner went to collect the goods from the domestic cargo complex of the International Airport on February 07, 2024, he was informed that the Preventive Officer of customs SRI Unit, the 5th respondent herein visited in-bound domestic cargo warehouse of the International Airport on February 05, 2024 and detained/seized the goods. The reason behind such detention was that the goods were suspected to be of foreign origin and illegally imported into India in contravention of the provisions of the Customs Act, 1962 and the Foreign Trade Policy, 2023. The goods were seized on February 06, 2024 under Section 110 of the Customs Act (the Act) after which an inventory-cum-seizure list of even date was prepared and reasons were recorded for the seizure. 3. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to lead to a reason to believe that the goods of the writ petitioner were of foreign origin and illegally imported into India and therefore the seizure is illegally. On facts the writ petitioner contended that the goods were sourced from Imphal, Manipur within India purchased by way of valid domestic transactions and the copies of the GST invoices e-way bills and air way bills were already submitted and therefore further detention of the goods is not tenable. Further it was contended that the customs authorities cannot seize or detain the goods under Section 110 of the Act on a mere suspicion and as such there was no reason to believe that the consignment was liable to be confiscated under the provisions of the Customs Act. The revenue resisted the prayer sought for in the writ petition and the contentions are advanced by contending that although jurisdiction has been conferred on the Principal Commissioner of Customs (Port), Kolkata and Principal Commissioner of Customs (Airport and Air Cargo Complex) Kolkata in respect of the area of the airport, the some does not denude the power and authority of the Commissioner of the Customs (Preventive), West Bengal from exercising jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r mark and spring tide on either side of the river as also the Andaman and Nicobar Islands and Falta Special Economic Zone. The learned writ court held that a conjoint reading of column 2 serial no. 10 and 11 and column 3 of table 2 it clearly appears that all though jurisdiction has been conferred on the Commissioner of Customs (Preventive) in respect of the whole of State of West Bengal, yet the Principal Commissioner of Customs (Port), Kolkata and the Principal Commissioner of Customs (Airport and Air Cargo Complex), Kolkata have been conferred with jurisdictional area inter alia, including Netaji Subhas Chandra International Airport. Thus the learned writ court held that in the notification which delineates the jurisdiction of the officers of the customs makes it explicitly clear that sole jurisdiction has been conferred on the Principal Commissioner of Customs (Port) Kolkata and the Principal Commissioner of Customs (Airport and Air Cargo Complex), Kolkata to decide all violations in respect of inter alia, Netaji Subhas Chandra International Airport. The learned writ court rejected the contention of the revenue that the Commissioner of Customs (Preventive) enjoys concurrent ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 24.08.2017 clearly specifies that the Principal Commissioner of Customs (Airport and Air Cargo Complex), Kolkata and Principal Commissioner of Customs (Port), Kolkata has only jurisdiction over the ports of Kolkata and Haldia and Netaji Subhas Chandra International Airport, the area under the jurisdiction of Kolkata, Howrah and South Suburban Corporations so much of the Hooghly river as its downstream of the Northern Limit of the Kolkata Port and lands are within 10 kilometres of the high water mark had spring tide on either side of the river the Andaman and Nicobar Islands and Falta, Special Economic Zone. 10. It is further submitted that the Dum Dum Airport has been declared as Netaji Subhash Chandra International Airport from 1995 and in terms of the notification dated 25.08.2017, the Principal Commissioner of Customs (Airport and Air Cargo Complex), Kolkata has only jurisdiction over Netaji Subhash Chandra International Airport and not on the whole airport. Further it is contended that the learned writ court failed to appreciate that the Commissioner of Customs (Preventive), West Bengal has jurisdiction over the whole of the State of West Bengal and therefore the seizure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requires an authority to exercise powers it is only that authority which can exercise such power and not any other authority. Further the reason to believe that the goods are of foreign origin requires a solid foundation and cannot be on a mere suspicion more particularly when the burden is on the department to show that the goods are of foreign origin. With regard to the Customs Preventive Manual which was relied on by Mr. Maity, it is submitted that it is in the nature of a citizen s charter and the same cannot be relied on by the department to sustain their action. 13. We have elaborately heard the learned advocates for the parties and carefully perused the materials placed on record. 14. Section 110 of the Customs Act, 1962 deals with seizure of goods, documents and things. Sub-section (1) states that if the proper officer has reason to believe that any goods are liable to confiscation under the Act, he may seize such goods. Reasonable belief as to the smuggled goods as enjoined in the Act was explained by the Hon ble Supreme Court in State of Gujarat Versus Mohanlal Gitamalji (1987) 2 SCC 364. It was held that whether or not the officer concerned had seized the article under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ji Subhas Chandra International Airport. Before we go into the notification dated 24.08.2017 we are required to consider as to what is the purpose for which the Preventive Wing of the customs department has been created/notified. We do not agree with the submissions made by the learned advocate for the respondent writ petitioner that the Customs Preventive Manual relied on by Mr. Maity is in the form of a Citizen s Charter. No doubt in the first page of the Preventive Manual under the column contents pages (i) to (ii) mentions Citizen s Charter of Customs and Central Excise, however what is important is the subsequent chapters which deal with powers, duties and responsibilities of the preventive department. Under chapter 1 under sub-heading Organizational Set Up, Field Formation has been dealt with. It is stated that to effectively monitor the entire gamut of the customs work along the borders and across the country, Field Formations in the form of land customs stations, customs ports and customs airport, customs area warehousing the boarding stations, exporting processing zones, inland container depos and freight stations etc. have been appointed by the Government under Section 7, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes that the preventive officer of customs is the first to greet any visitor arriving in India and the last he has to see departure from India and in the process, he has to shoulder dual responsibility. On the one hand, he has conduct himself to the visitor as an ambassador of India. On the other, being a soldier in the economic front, he has to ensure the proper observance of the laws of the land by the visitor. Further a separate sub-heading has been devoted for Proper officers under the Customs Act, 1962 and a tabulated format has been given giving the relevant sections of the Customs Act and the subject to be dealt with by the officer in brief. In chapter 4 of the table deals with preventive officers and the powers under Section 110 has also been conferred on the preventive officers. Chapter 5 of the manual deals with import and exports buyers under which there are various sub-headings one of which is the air cargo complex. There is a reference to both Circular No 69/99-Cus dated 06.10.1999. Under the sub-heading I.G.M Register, it is stated that it will be the duty of the Superintendent (Preventive/Cargo) to ensure that each and every flight landed, the master copy of the I.G. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioners of Customs working under the control of- (i) Principal Commissioner of Customs (Port), Kolkata; (ii) Principal Commissioner of Customs (Airport and Air Cargo Complex). (11) (i) The whole of the States of West Bengal and Sikkim; (ii) Union Territory of the Andaman and Nicobar Islands Commissioner of Customs (Preventive), West Bengal Additional Commissioners, or Joint Commissioners, or Deputy Commissioners of Customs working under the control of the Commission er of Customs (Preventive), West Bengal. 20. The above notification has been issued by the Central Board of Excise and Customs in exercise of the powers conferred under Sub-section (1) of Section 4 of the Customs Act and in supersession of the three notifications all dated September 16, 2014 whereby the Central Board appointed the officers and define the area of jurisdiction. Section 4 of the Customs Act deals with Appointment of Officers of Customs. Sub-section (1) states that the Central Government (subsequently substituted with the word Board with effect from 11.05.2002) may appoint such persons as it thinks fit to the officers of the Customs. Sub-section (2) states that without prejudice to the proceedings of the Sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stoms working under the control of the Commissioner of Customs (Preventive), West Bengal shall also exercise jurisdiction to the whole of the States of West Bengal and Sikkim as well as Union Territory of the Andaman and Nicobar Island. 23. Clause 10 of the notification deals with the jurisdiction of the (i) Principal Commissioner of Customs, (Port), Kolkata (ii) Principal Commissioner of Customs (Airport and Air Cargo Complex), Kolkata and the Additional Commissionersor Joint Commissioners or Deputy Commissioners or Assistant Commissioners of Customs working under their control. Their jurisdiction is with regard to the ports of Kolkata and Haldia, Netaji Subhash Chandra International Airport, area under the jurisdiction of Kolkata, Howrah and South Suburban Corporations so much of Hooghly river as is downstream of the Northern Limit of Kolkata port and all lands as are within the 10 kilometers of high water mark and spring tide on either side of the river; (ii) the Andaman and Nicobar Islands; (iii) Falta, Special Economic Zone. 24. As noted above the interpretation to be given to statutory notification conferring jurisdiction upon the officers has to be given the true meaning and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seizure list of the seized goods dated 06.02.2024, it has been stated that the Cargo Manager of the Indigo Airlines was directed to call the consignee, the writ petitioner to appear. However, the consignee/writ petitioner neither appeared to claim the goods nor contacted the officers concerned. Therefore, the seizing officer has recorded that the consignee neither turned up nor produced any documents to claim the goods and therefore the goods have been seized under Section 110 of the Customs Act on the reasonable belief that the said goods were illegally imported in India in contravention to the provisions of the Foreign Trade Policy, 2023 and liable for confiscation under the provisions of the Customs Act. Further it is seen that representative samples have been drawn from all the three bags and the seizure-cum-search list incorporating all the facts was prepared in the presence of the two independent witnesses. Therefore, it cannot be stated that the seizure was effected without any reasonable belief that the goods are of foreign origin. 27. In the result, it is held that the seizure by the Preventive Department of the Customs is valid and the seizure is not vitiated for the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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