S. MOHAN Vs. STATE OF TAMIL NADU REP. BY ITS SECRETARY TO GOVT., PUBLIC (SC) DEPARTMENT, FORT ST. GEORGE, CHENNAI,

JUDGEMENT

(1.) The Writ Petition is for the issue of a Writ of Habeas Corpus by calling for the records of the first respondent State of Tamil Nadu in G.O. No.SR.I/366 -5/2001 Public (SC Department) dated 19.4.2001 issued under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (hereinafter referred to as the Act) and for the release of the detenu.

(2.) The detention order is passed in exercise of the powers conferred by Sec. 3(1)(i) of the Act. On the materials placed before the State Government that the petitioner had indulged in smuggling of goods, the above order came to be passed. The facts necessary for the disposal of the case are stated hereunder.

(3.) The petitioner started a concern in the name and style of M/s. Majestic International some time in October, 2000. A Current Account was opened in the name of the concern on 20.10.2000 with the Bank of Baroda, S.I.E.T. Branch, Chennai -18. Petitioner took lease of the premises at Door No.1, P.P. Amman Koil III Street, Tondiar Nagar, Chennai -81 on 10.7.2000. He obtained a Certificate of Importer and Exporter Code from the Ministry of Commerce dated 2.11.2000 preceded by his application dated 28.10.2000. Petitioner placed an order for import of 360 numbers of table fans sometime in January, 2001 and the goods arrived by the Vessel "TIGER METRO 865 -N" from Singapore. Petitioner filed a bill of entry through his clearing agent M/s. Lotus International Services dated 23.1.2001 as per the invoice issued by M/s. Sea Field Impex, Singapore in the name of M/s. Majestic International. The quantity of goods indicated was 360 table fans in 12 wooden cases with a unit price of 9.81 Singapore Dollars and a total price of 3531.60 Singapore Dollars. The said bill of entry was assessed by the Customs and an amount of Rs.64,968/ - was paid as duty on 23.1.2001. When the above mentioned wooden cases were inspected by the officers of the Directorate of Revenue Intelligence on 2.2.2001, the wooden cases were found to contain 90 table fans as against the declared quantity of 360 table fans, besides other electronic items like Cell Phones, V.C.D. Players, Air Conditioner Compressors and Tapes, having a total C.I.F. value of Rs.90,74,760/ - and an approximate market value of rupees 1.6 crores. They were seized under a magazar. Summons dated 3.2.2001, 4.2.2001 and 5.2.2001 were issued by the D.R.I., Chennai to Thiru T.S. Kamalakannan, partner of M/s. Lotus International Services, the Customs House Agent for the subject consignment, who gave a voluntary statement dated 4.2.2001 that the petitioner was introduced to him by one Thiru Vinodh Kumar and that the petitioner had earlier requested for the clearance of Mini Car Fans from Singapore and that he handled the goods in question by filing the bill of entry. Petitioner did not pay heed to the summons issued to him and they were returned undelivered by the postal authorities. Petitioner thereafter appeared before the D.R.I., Chennai on 14.3.2001 on his own and gave a voluntary statement stating that he had opened a current account and obtained a P.A. Number from the Income Tax Department and the Importer Exporter Code from the Commerce Department and also that he had imported the goods and that some persons, whose names and details he did not remember, informed him that certain amount will be paid to him whenever goods were imported in the name of his company. He has also referred to the goods imported by Krishnakumar in the name of M/s. Blue Wave Impex. The electronic goods and table fans were seized on 2.2.2001 for having been imported in contravention of the provisions of Sec. 11 of the Customs Act, 1962 read with Sec. 3(3) of the Foreign Trade (Development and Regulation) Act, 1982 by giving a false declaration with a deliberate intention to evade payment of customs duty thereby and since the items were liable for confiscation under Ss. 111(d), 111(i) and 111(m) of the Customs Act, 1962. Petitioner was arrested by the officers of the D.R.I., Chennai on 14.3.2001 and produced before the Additional Chief Metropolitan Magistrate (E.O. II), Egmore, Chennai, who remanded him to judicial custody till 29.3.2001. At the time of remand, petitioner had complained that he was beaten up by the Intelligence Officers. He had filed a bail application in the Court of the Additional Metropolitan Magistrate on 15.3.2001, inter alia, contending that the statement was obtained from him by threat, coercion and undue influence and he retracted from his statement as involuntary. The D.R.I., Chennai filed a counter dated 21.3.2001 denying the allegations made by the petitioner in the bail application. The Government, after taking into consideration the allegations contained in the bail application and after having been satisfied that the said allegations are baseless, after -thought and devoid of merits and rejecting the same, passed an order of detention after having been satisfied that the petitioner had indulged in smuggling goods.