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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
P.N. PRAKASH, J.
K. Muthuselvam and Others – Petitioners
Versus
State by the Deputy Superintendent of Police SPE/CBI/ACB Chennai – Respondent
Crl. O.P. (MD) Nos. 7444, 7445, 7446, 7447, 7448, 7449 of 2016 & Crl. R.C. (MD) Nos. 244, 246 of 2015
Decided On : 16-02-2018
Customs Duty - Anti-dumping Duty - Notification No. 147 of 2003, Customs, dated 07.10.2003 - Sections 120-B r/w 420 I.P.C. and Sections 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988
Fact of the Case:
The case involved the import of steel measuring tapes from China, where the importer failed to pay the anti-dumping duty. The accused were charged under Sections 120-B r/w 420 I.P.C. and Sections 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988.
Finding of the Court:
The court found prima facie evidence against the accused for not levying anti-dumping duty and instead levying only customs duty, leading to their involvement in the offenses charged.
Issues: The main issue was whether the accused had deliberately avoided levying anti-dumping duty and instead levied only customs duty, as required by the law.
Ratio Decidendi: The court held that there were prima facie materials to prosecute the accused for not following the procedure while calculating the duty, and dismissed the discharge applications of the accused.
Final Decision: The court discharged Ganesan and Muthuselvam from the prosecution, but directed E. Ramesh and A.K. Sharma to appear before the Trial Court and dismissed their quash applications.
1. Investigation in this case began when the officials of the Directorate of Revenue Intelligence, Tuticorin (hereinafter, referred to as the D.R.I.) intercepted a container covered under a bill of entry no. 446476, dated 06.10.2008, filed by M/s. Edge, Mumbai, after the truck carrying the container left Concord CFS, Tuticorin. The officials of D.R.I. checked the container and it was found to contain steel measuring tapes. They drew three samples, namely S1, S2 and S3 and forwarded the same to the Customs Laboratory vide Test Memo No. 1 of 2009, dated 12.02.2009 in order to ascertain its weight, gauge etc. After receiving the report from the Customs Laboratory, it came to light that the consignment would attract anti-dumping duty, but the same had not been paid by the importer. Further enquiry revealed that the importer was one Sanjay H Shah (A1) and that he had engaged M/s. Green Port Shipping Agency, Tuticorin, as his clearing agent for clearing the consignment. The documents accompanying the consignment revealed that the consignment had been imported from China. At this juncture, it may be relevant to say about the Rule relating to anti-dumping duty. The Government of India published the principal Notification No. 147 of 2003, Customs, dated 07.10.2003, wherein it has been stated that import of steel and fiber glass tapes and its parts and components originating in or exported from Republic of China would attract anti-dumping duty, since the domestic industry would suffer. According to the said Notification, steel measuring tapes, its parts and components imported from China costing less than 4.106 US$ per Kilogram would attract anti-dumping duty (emphasis supplied). The Notification also explained in detail how the landed value of the consignment should be assessed and how the anti-dumping duty for the same should be calculated. To continue with the narration of the facts from where it was left, the D.R.I. Officials proceeded further with the investigation and summoned Sanjay H Shah (A1), Proprietor of M/s. Edge, Mumbai and recorded his statement under Section 108 of the Customs Act. He confessed to the effect that he had imported twelve consignments from 2006-2008 onwards and had cleared the goods through K.S. Murugan (A2) of M/s. Green Port Shipping Agency, Tuticorin, without payment of anti-dumping duty. The Central Bureau of Investigation (hereinafter, referred to as the C.B.I.) got wind of this and registered two first information reports on 20.02.2012 in R.C. Nos. MA-1-2012-A0006 and MA1-2012-A0007.
2. In R.C. No. 6 of 2012, Sanjay H Shah (Proprietor of M/s. Edge, Mumbai), K.S. Murugan (Proprietor of M/s. Green Port Shipping Agency, Customs House Agent, Tuticorin), Thirugnanam (Retd. Superintendent of Customs), T.M. Ramalingam (Retd. Superintendent of Customs), V. Thirumanivasagam (Retd. Superintendent of Customs), B.S. Krishnamurthy (Superintendent of Customs), R. Ramamurthy (Superintendent of Customs), R. Venugopal (Inspector of Customs), S. Ganapathy (Inspector of Customs), K. Jayasrinivasan (Retd. Inspector of Customs) and J. Jayakumar (Inspector of Customs) were arrayed as A1 to A11 respectively. The F.I.R. in R.C. No. 6 of 2012 relates to six consignments imported by Sanjay H Shah (A1) between July, 2006 and August 2007, which were cleared by the above named Customs Officials, namely, A3 to A11 without levying anti-dumping duty.
3. In R.C. No. 7 of 2012, Sanjay H Shah (Proprietor of M/s. Edge, Mumbai), Murugan (Proprietor of M/s. Green Port Shipping Agency, Customs House Agent, Tuticorin), S. Sivaraman (Superintendent of Customs), G. Rajendran (Retd. Superintendent of Customs), P. Ganesh (Retd. Superintendent of Customs), V. Ponnusamy (Superintendent of Customs), C. Govindasamy (Superintendent of Customs), S. Joseph Aloysius (Inspector of Customs), K. Venkateswaran @ K.Sekaran (Inspector of Customs), S. Kaleeswaran (Inspector of Customs) and K. Muthuselvam (Inspector of Customs) were arrayed as A1 to A11 r
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