KISHAN NARAIN Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The appellant was convicted by the Special Judge of Bombay under S. 1 65-A I.P.C. and sentenced to rigorous imprisonment for one year and to pay a fine of Rupees 10.000. On appeal the High Court of Bombay upheld the conviction but reduced the sentence of imprisonment to six months. The appellant is a partner of a firm owning the New India Knitting Mills in Amritsar. It has a sister concern called J. D. Woollen and Silk Mills, which is owned by a partnership firm of which the appellant's minor son is a partner. On 10-10-1963 the J. D. Mills was given an import licence for Rs. 23,480/- for spare parts for Warp Knitting Machine from Germany. Towards a part of that import licence goods valued at Rupees 11.699/- arrived in Bombay on 16-3-1964. The J. D. Mills arranged for clearance of this consignment by the New Suraj Transit Company having its head office in Amritsar and a branch in Bombay. One Hiro Shahani, who became an approver in this case, was an employee of the clearing agents. Bakubhai Ambalal and Co. were the representatives in India of the machinery manufacturing company.

(2.) It appears that in July 1963 there was an anonymous petition against the two mills and on 21-11-1963 an order was made by the Principal Appraiser of the Special Investigation Branch of the Customs that a careful watch should be kept over the imports by the two mills. On 30-3-1964 the J. D. Mills had made a representation to the Deputy Collector incharge of the Appraising Department in the Customs House at Bombay complaining against long delays in clearing their imports and thereafter the appellant also seems to have met the Deputy Collector, Customs and protested against excessive scrutiny. The Deputy Collector ordered the matter to be examined and if there was no substance in the complaint against the mills to consider reviving normal examination. By that time the consignment already referred to had arrived. The Bill of Entry in respect of this consignment was prepared on 4-6-1964. The Import Branch sent it to the Special Investigation Branch and that Branch sent it back to the Import Branch. The consignment was examined by one Motwani, who was later examined as P.W. 6 in the case. He was of opinion that the goods were not spare parts but that it was a machine in assembled condition. The Shed Appraiser agreed with this view. The clearing agents thereupon telephoned to the appellant who asked them to make a request for re-examination as provided under the rules, Shahani, the approver, thereupon requested the Principal Appraiser, Almeida, for re-examination. Almedia made an order for scrutiny by the scrutinizing appraiser and the shed appraiser. One Vazirani, scrutinising appraiser, made a re-examination accordingly and made a report, which was approved by the shed appraiser, Menon. This went to the scrutinising appraiser, Merchant, who in his turn examined it in the presence of Shahani and Majumdar, the engineer of Bakubhai Ambalal, and recommended issue of show cause notice for misdeclaration. Almeida approved of it on 9-7-1964 and on 17-7-1964 a notice was accordingly issued by Almaida.

(3.) On 1-7-1964 the appellant reached Bombay. Towards the end of that month the Central Intelligence Unit was constituted in the Customs Department and it was to function as the vigilance party of that department. P.W. 3, Ramachandra Rao, was one of the appraisers transferred to this unit. He inspected the goods on 1-8-1964. On 4-8-1964 he was directed by the Assistant Collector in-charge. Sonavne to execute warrants of search against Bakubhai Ambalal, who however produced the documents asked for.