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2018 Supreme(Kar) 387

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DINESH MAHESHWARI, R. DEVDAS, JJ.
Shri Nishchal Padhya S/o Kantilal H. Padhya – Petitioner
Versus
Union of India Ministry of Finance, Department of Revenue – Respondent
Writ Petition Nos. 44410-44411 of 2017
Decided On : 31-07-2018

Advocates Appeared:
For the Petitioners: Nischal Padhya, Sri. Arun Goyal.
For the Respondents: Smt. M. Birdy Aiyappa, Sri. Jeevan J. Neeralagi, Sri. Akash B. Shetty.

Headnote:

Customs Act - Business of running supply chain - Smuggling activities - Imported goods - Specific allegation of petitioners is that in year 2009 “Aero India 2009” Exhibition (or what is popularly known as “Aero Show”) was held at Bengaluru and some of companies engaged in business of running supply chain and logistical supports imported Fighter Aircraft F-16 and its ground support handling equipments to show-case Fighter Aircraft in exhibition and while doing so, imported goods and materials were not subjected to customs duty - Petitioners allege that action of those companies amounted to smuggling activities - It is further contended that at instance of the petitioners, Directorate of Revenue Intelligence (DRI) conducted enquiry in matter - Petitioners aver that investigating officer was transferred and thereafter, there was no progress in the investigation - Petitions join list of unwarranted PILs filed by self serving and discontented persons, either to serve their own private interest or to score a point against their business rivals - Admittedly, 1st petitioner is a Customs agent and 2nd petitioner is a consultant in field of Customs – Held, Court while exercising its extraordinary jurisdiction and deciding a public interest litigation is cautioned to take great care, lest its wide jurisdiction is abused by petulant - Laudable objective with which PIL jurisdiction was evolved by Courts, cannot be allowed to be misused by unscrupulous persons, masquerading in garb of public spirited persons - Companies which imported F-16 Fighter Aircraft and its ground handling equipments have suffered legitimate Customs duty in terms of provisions of Customs Act and Notification - Most importantly, provisions as contained in Notification No.3/89-CUS., dated have been adhered to and goods have been re-exported within stipulated period - It cannot, but be concluded that petitioners are aware of all these aspects and have filed instant petitions with an oblique motive while making reckless allegations and have gravely abused the process of law - Writ petitions stand dismissed.

ORDER :

1. The petitioners have filed this Public Interest Litigation (‘PIL’) alleging that certain sensitive materials were brought into India without following due process of law, thereby causing heavy loss of revenue and also compromising on national security and safety.

2. The specific allegation of the petitioners is that in the year 2009 “Aero India 2009” Exhibition (or what is popularly known as “Aero Show”) was held at Bengaluru and some of the companies engaged in the business of running supply chain and logistical supports imported Fighter Aircraft F-16 and its ground support handling equipments to show-case the Fighter Aircraft in the exhibition and while doing so, the imported goods and materials were not subjected to customs duty. The petitioners allege that the action of those companies amounted to smuggling activities. It is further contended that at the instance of the petitioners, the Directorate of Revenue Intelligence (DRI) conducted enquiry in the matter. The petitioners aver that the investigating officer was transferred and thereafter, there was no progress in the investigation. It is in this background that these writ petitions are filed seeking directions to the respondents to submit all records, including the original investigation file, call for a detailed report, collect the import duty and taxes evaded along with interest, fine and penalty and to recover the sensitive military goods smuggled into the country and ensure the safety and security of the country.

3. These petitions join the list of unwarranted PILs filed by self serving and discontented persons, either to serve their own private interest or to score a point against their business rivals. Admittedly, the 1st petitioner is a Customs agent and the 2nd petitioner is a consultant in the field of Customs. They are business rivals of the companies against whom allegations are made in these writ petitions. Though petitioners have made allegations against a few companies, those companies are not impleaded as party respondents to these writ petitions.

4. Statement of objections have been filed by respondent Nos. 3, 4 and 6, i.e., the Directorate of Revenue Intelligence and the Additional Commissioner of Customs, denying the petition averments. The replies bring forth the following aspects:

(i) The cause of action arose in the year 2009, complaint was lodged in July 2012, three years after the goods were imported and these petitions are filed in the month June, 2017. These petitions are liable to be dismissed on the ground of delay and laches.

(ii) As per Customs Notification No.3/89, dated 09.01.1989, Customs duty is exempted for goods imported for display in exhibition sponsored by the Government of India, held in public interest and open to general public, subject to8 certain conditions that are listed in the said Notification and the imported goods are re-exported in full, within six months.

(iii) The investigating Officer concluded the investigation on the basis of records/data collected in respect of the case.

(iv) The goods were imported on 03.02.2009 and re-exported on 22.02.2009, fulfilling the stipulations contained in the Notification.

(v) Similar writ petition, styled as public interest litigation was filed in W.P.No.5973/2011 before this Court and the same was disposed of on 04.02.2011, recording the statement of the Commissioner of Customs. The 2nd petitioner herein was also the 2nd petitioner in that matter.

5. The petitioners herein have filed a rejoinder to the statement of objections. What needs to be highlighted from the rejoinder to paragraph No.11 of the statement of objections is as under:

“The petitioner No.2 had come across improper importation of flying in Aircrafts for the display at various Aero India Trade Shows, therefore, the petitioner No.2 had preferred a PIL before this Hon’ble High Court of Karnataka which was disposed of as per order No.W.P.No.5973/2011.”

6. Heard Sri. Nischal Padhya, petitioner No.1, party-in-person, Sri. Je















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