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TMI Blog1987 (11) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... atement is recorded. As we fully endorse the reasons given and the view taken by the learned Judge while dismissing the writ petitions, we do not think it necessary to deal in extenso with the arguments advanced before us. However, since the matter has been argued at considerable length we might briefly indicate the two contentions and the reasons for rejecting them. 2. The first contention was that a summons under Section 108 of the Act cannot be issued unless an enquiry as contemplated by Section 124 of the Act is commenced by a notice to show cause as to why either the goods should not be confiscated or that penalty should not be imposed on the persons concerned. Reliance has been placed for this view on the decision of the Gujarat Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt it was observed that Section 108 of the Customs Act, 1962 relates to a formal inquiry where a person can be required to give evidence and produce documents by issuing summons. 3. Now insofar as this Court is concerned, the scope of Sections 107 and 108 of the Act was considered by a Full Bench of this Court in Collector of Customs v. K. Bhirumal Pahlajani (1987 I MLJ 408). Dealing with Sections 107 and 108, the Full Bench observed that what Section 107 contemplates is a less formal and rigorous type of enquiry by the Customs Officers, whereas Section 108 contemplates an enquiry which is almost parallel to the enquiry under Section 171-A of the old Sea Customs Act. Section 171-A was considered by this Court in Rainbow Trading Co. v. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is entitled to serve a summons to produce a document or other thing or to give evidence and the person so summoned is bound to attend either in person or by an authorised agent, as such officer may direct, and the person so summoned is bound to state the truth upon any subject respecting which he is examined or makes a statement and to produce such documents and other things as may be required. The power to arrest, the power to detain, the power to search or obtain a search warrant and the power to collect evidence are vested in the Customs Officer for enforcing compliance with the provisions of the Sea Customs Act." 4. The above observations will indicate that the power to collect information by summoning persons to give evidence and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms Officer of gazetted rank has been given the power to summon any person to give evidence. The object of such an enquiry is to ascertain facts with regard to smuggling of goods. A person who is summoned under Section 108 may have nothing to do with the actual smuggling of goods although he may know other relevant facts regarding such goods. That is why even a person who has nothing to do with actual smuggling of goods can also be summoned in an enquiry under Section 108. 6. In Balakrishna's case, it is undoubtedly observed by the Supreme Court that while the normal .process of enquiry is facilitated by Section 108, investigatory emergencies are taken care of by Section 107. In the same decision, it was pointed out that the provision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1017 of 1987. A statement with regard to earlier transaction in gold was also made by him. An enquiry is now being made for the purpose of verifying the truth or otherwise of these statements, and the appellants have been served with summons under Section 108 of the Act. 7. The provisions of Section 40 of the Foreign Exchange Regulation Act which are stated by the Division Bench of the Kerala High Court to be identical to the provisions of Section 108 of the Act do not seem to be as general in character as the provisions of Section 108 of the Act. While Section 108 of the Act refers to an enquiry in connection with the smuggling of any goods Section 40(1) of the Foreign Exchange Regulation Act refers to 'any investigation or proceeding un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a person involved in the commission of any offence or may be a person who only knows some facts or about somebody also committing it who is in the nature of a witness unconnected with the offence. 9. It was then argued that the appellants could not be arrested on somebody else's statement. Whether the appellants will be arrested or not is not a matter which can be gone into at the moment and there is no reason to assume that the Customs authorities will abuse their powers. 10. A grievance is made that when witnesses are examined under Section 108 of the Act, they are examined at any time of the day and that they are kept in one room. These are all matters of hypothetical consideration, though we might make it clear that it was stated on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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