IN THE HIGH COURT OF ALLAHABAD
SAMEER JAIN, J.
Mohd. Tufial & Ors. - Applicants
Versus
Union of India & Ors. - Opposite Parties
Criminal Misc. Bail Application Nos. 57731, 60061 of 2022
Decided On : 23-03-2023
Customs Act, 1962 - Sections 135(1)(A) and 135(1) (B) - Anticipitory Bail - Directorate of Intelligence - Smuggling the foreign origin gold - Recovered from possession - Whether value of individually recovered gold should be considered or value of combined recovered gold should be considered - Held, According to prosecution gold was recovered from possession of applicants which was liable for confiscation Section 111 of Customs Act and as per Section 125 Customs Act authority concerned may levy fine in lieu of confiscation and therefore it appears from provisions of Section 11 of Customs Act gold is not prohibited goods but it is restricted goods and as per Section 125 Customs Act in lieu of confiscation fine may be levied - As import of gold is not prohibited but restricted subject to prescribed payment of duty alleged recovered gold is not prohibited goods Section 2(33) Customs Act but it is restricted goods in view of judgment of three Judges Bench of Apex Court in case of Atul Automation - Petition Allowed.
JUDGMENT :
1. Since both the instant bail applications have arisen out of Case No.2 of 2022, under Sections 135(1)(A) and 135(1) (B) of Customs Act, 1962 ( in short the Act ) through Directorate of Intelligence, therefore, both the bail applications are being decided by common order.
2. Heard Sri N.I. Jafri, learned Senior Advocate assisted by Sri Ali Jamal Khan and Sri Anil Kumar Srivastava, learned counsels for the applicants, Sri Krishna Agarwal, learned counsel for DRI-opposite party no.2, Sri Vinay Kumar Singh, learned counsel for the Union of India and Sri Tanay Kumar, learned AGA, for the State.
3. The instant applications have been moved on behalf of the applicants with the prayer to release them on bail in Case Crime No.02 of 2022, under Sections 135(1)(A) and 135(1)(B) of Customs Act, 1962, through Directorate of Intelligence, during pendency of the trial.
BRIEF FACTS:
4. According to the prosecution, on 6.11.2022 an intelligence input was received by DRI that some persons, who were travelling in Train No.22422 in Coach-B-5 at Seat No.2, 3,54 and 56 are smuggling the foreign origin gold and they boarded in the Train from Jodhpur, Rajasthan and are going to deliver smuggled foreign origin gold in Rampur, Uttar Pradesh. Thereafter on 6.11.2022 Team of DRI Officers arrived at Rewari Junction Railway Station and when train arrived at the Junction at about 8.20 PM then Officers found that on the above mentioned seats applicants and two others were sitting and from the possession of applicant Mohammad Alam 549.5gm. gold in form for rods and from the possession of applicant Mohammad Tufail 526gm. gold in paste form were recovered. It is further alleged that from the possession of rest of accused persons, namely, Ishrat Ali 947.5gm gold and from the possession of Mohammad Naeem 525.5gm gold were recovered. Thus, as per DRI total 2548.5gm gold were recovered from the possession of applicants and two others. Thereafter, the extracted weight of alleged gold recovered from the possession of applicant Mohammad Tufail was ascertained and weight of extracted gold was ascertained as 448.50gm. As the gold recovered from the possession of applicant Mohammad Alam was already in solid form, therefore, it was not made part of extraction process.
5. According to the DRI, the market value of the total gold recovered from the possession of the applicants and two others was Rs. One Crore Thirteen Lacs Twenty Four Thousand Six Hundred and Eight and market value of the gold recovered from the possession of applicant Mohammad Alam and applicant Mohammad Tufail was Rs.27,98,054/- and Rs.22,83,762/- respectively. It is further alleged that the statements of applicants and other co-accused persons were recorded by the Custom Officers under Section 108 Customs Act and they confessed their guilt and stated that the alleged recovered gold was smuggled gold of foreign origin and they purchased it from Dubai.
6. All the accused persons including applicants also stated that they are known to each other and they collectively indulged in smuggling of gold of foreign origin.
7. After panchnama applicants were arrested on 9.11.2022 and investigation was commenced and after investigation on 5.1.2023 DRI filed criminal complaint against applicants and two others in the court of Special Chief Judicial Magistrate (Economic Offences) Meerut.
SUBMISSIONS ON BEHALF OF THE APPLICANTS :
8. Learned counsels for the applicants submit, entire allegation made against the applicants are totally false and baseless and applicants never indulged in smuggling of alleged gold of foreign origin. They further submitted that applicants and two others were forcibly apprehended by Officers of DRI from the Train on 6.11.2022 and thereafter by cooking up false story and planted recovery of gold they have been implicated in the present matter. He further submits, applicant were arrested on 9.11.2022, i.e., after about three days from the date of alleged seizure of gold.
9. Learned counsels for
Sheikh Mohd. Omer v Commissioner of Customs, Calcutta and others
Toofan Singh Vs. State of Tamilnadu
Satender Kumar Antil vs. Central Breau of Investigation and another
The court held that the offence under the Customs Act is bailable as the value of gold in individual possession is below Rs. 1 Crore, classifying the goods as restricted rather than prohibited.
The court held that the offence under Section 135 of the Customs Act is bailable when the value of the goods is below Rs. 1 Crore and classified as restricted rather than prohibited.
Section 135 of Customs Act, 1952 reads as evasion of duty or prohibitions.
The court ruled that the statutory provisions under the Customs Act render the offence non-bailable due to the substantial value of contraband, emphasizing public interest and evidence integrity.
Smuggling of gold, even with intent to threaten economic security, does not constitute a terrorist act under Section 15(1)(a)(iiia) of the UA(P)A.
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