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2019 Supreme(Bom) 1479

IN THE HIGH COURT OF BOMBAY
N.J. Jamadar, Ranjit More, JJ.
Imran Latif Shirgawkar - Appellant
Vs.
Directorate of Revenue Intelligence, Mumbai - Respondent
Writ Petition No. 4779 of 2019
Decided On : 27-09-2019

Advocates Appeared:
For the Appellant : Dr. Sujay Kantawala i/b Mr. Siddiqui Mohammed Arif
For the Respondent: Ms. Rebecca Gonsavlez, Ms. P.H. Kantharia

Headnote:

Customs Act, 1962 - Section 104 – Criminal Procedure Code - Section 320 - Constitution of India - Article 226 – Claim of compensation - Condo nation of delay - Issue a writ of mandamus or any other appropriate writ order or direction restraining Respondent from filing any criminal prosecution qua Petitioner under provisions of Customs Act, 1962 for alleged compoundable offence in respect of which Application for compounding as permitted under Customs Act, 1962 read with section 320 of Croc is already filed - Issue a writ of mandamus or any other appropriate order or direction directing the Respondent to expeditiously adjudicate and decide on merits by a speaking order Petitioners application of alleged compoundable under the Customs Act, 1962, by exercising powers conferred under section 5(2) read with section 122 and 137(3) of Customs Act, 1962, at this stage before filing of any criminal prosecution qua the Petitioner – Held, Section 137(3) of Customs Act, 1962 permits filing of compounding application at any stage and provides that any offence under that Chapter may either before or after institution of prosecution be compounded by principal chief commissioner of customs or chief commissioner of customs on payment by person accused of an offence to Central Government of such compounding amount and in such manner of compounding as may be specified by the Rules - Proviso to the said provision contains disability clauses for entertaining application for compounding - It is not even case of Respondent that instant case falls under any of disability clauses of said In affidavit-in-reply filed on behalf of Respondent-compounding authority main objection taken is that as per respondents compounding application filed by Petitioner under provisions of Customs Act is premature as payment of duty fine penalty has not been determined so far - Affidavit of further states that admittedly show cause notice has not been issued and thus application is not maintainable and it is premature - It is also stated that as per Rule 4(3) of Compounding Rules Petitioners application for compounding, may or may not be allowed by compounding authority if it is allowed Petitioner may get immunity from the prosecution – Court have perused application form - Column require Applicant to disclose whether show cause notice is issued if it is issued details of duty demanded whether show cause notice is adjudicated if it is adjudicated to disclose duty confirmed and fine and penalty imposed and whether paid or not No bar on filing an application for compounding before issuance of show cause notice or adjudication thereof is contemplated in Act – Order accordingly

JUDGMENT :

Ranjit More, J.

The present writ petition is filed under Article 226 of Constitution of India by the Petitioner who is presently in judicial custody in Remand Application No. 161 of 2019 of Additional Chief Metropolitan Magistrate, 8th Court, Mumbai pursuant to his arrest under section 104 of the Customs Act, 1962, on the allegations of having committed an offence punishable under section 135(1)(i) of the said Act. There is no dispute on the fact that the said offence is "compoundable".

2. While in custody, but before filing criminal prosecution in the said case, the Petitioner has preferred an application for compounding of the alleged offence before the compounding authority under section 137(3) of the Customs Act, 1962. Immediately thereafter, the Petitioner has filed the instant writ petition to safeguard his fundamental rights while interalia seeking following relief’s :

    (a) Issue a writ of mandamus, or any other appropriate writ, order or direction, restraining the Respondent No.1 from filing any criminal prosecution qua the Petitioner under the provisions of Customs Act, 1962 for alleged compoundable offence, in respect of which the Application for compounding as permitted under the Customs Act, 1962 read with section 320 of CrPC is already filed;

(b) Issue a writ of mandamus, or any other appropriate writ, order or direction, directing the Respondent No. 3 to expeditiously adjudicate and decide on merits by a speaking order, the Petitioner's application dated 18.09.2019 (at Exhibit-'B'), for 'Compounding' of alleged 'compoundable' offence/s punishable under the Customs Act, 1962, by exercising powers conferred under section 5(2) read with section 122 and 137(3) of the Customs Act, 1962, at this stage, i.e., before filing of any criminal prosecution qua the Petitioner.;

(c) Issue a writ of mandamus, or any other appropriate writ, order or direction, directing the Respondent No.1 to take all necessary steps, to enable Respondent No. 3 to adjudicate and inform the amount, if any, legally due and payable by the Petitioner under the provisions of the Customs Act, 1962, as also the compounding fee that may be ascertained by him, in such time bound manner as may be directed by this Hon'ble Court, so as to enable the Petitioner to deposit such amounts to avail the statutory benefit of compounding;

(d) Issue a writ of mandamus, or any other appropriate writ, order or direction, granting bail to the Petitioner in the R.A. No. 161/2019 of ACMM, 8th Court, Esplanade, Mumbai."

3. Prior to his arrest, application for anticipatory bail preferred by the Petitioner was rejected by the Sessions Court and during the pendency of further anticipatory bail application proceeding before this Court, the Petitioner was arrested on 13th September 2019. He was remanded to custody on 14th September 2019. In paragraph 10 of the remand application dated 14th August 2019, following averments are made :

    "10. As there was reason to believe that Respondent No. 3 is guilty of offences punishable under section 135(1)(i) of the Customs Act, 1962, he was arrested on 13.09.2019 at 2030 hours. The offence committed by him is a cognizable and non-bailable offence under section 104 of the Customs Act, 1962."

4. In view of the filing of instant petition, the bail application which was pending before the Sessions Court has been withdrawn by the Petitioner as not pressed. It is pertinent to note that other accused are on bail.

5. The petition was opposed by filing separate affidavits by the compounding authority as well as the DRI praying rejection of the instant writ petition.

6. We have heard the learned counsel appearing for the respective parties at length and have carefully perused the record. Dr. Kantawala, learned counsel for the Petitioner submitted that all the allegations levelled in the remand application and the contention of the DRI in counter-affidavit show that the offence alleged under section 135(1)(i) of the Customs Act, 1962 is not only compoun

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