ABHISHEK MUNDHRA Vs. THE ADDITIONAL DIRECTOR GENERAL

JUDGEMENT

(1.) The petitioner has filed this Writ Petition for issuance of a Writ of Certiorari to quash the show cause notice, dated 13.04.2014, issued by the respondent, calling upon the petitioner (i) to explain as to why the seized 15.16kg of gold bars of foreign origin valued at Rs.4,53,89,040/-, should not be confiscated under Sections 111(d) and 111(l) of the Customs Act, 1962, (Act) read with Section 120(1) of the Act; (ii) why the seized packing material consisting of plastic box and Bengali newspapers should not be confiscated under Section 118 of the Act and (iii) why penalty should not be imposed on each of them under Section 112 of the Act.

(2.) The petitioner was called upon to show cause to the Joint/Additional Commissioner of Customs (Airport), Chennai within 30 days from the date of receipt of the notice. Apart from the petitioner there were 4 other noticees who were also directed to show cause as to why personal penalty should not be imposed on them under Section 112 of the Act. The respondent is the Additional Director General, Directorate General of Revenue Intelligence, Chennai.

(3.) A brief background as to under what circumstances, the impugned show cause was issued. Specific intelligence is said to have been received by DRI that the petitioner Mr.Abhishek Mundhra, Director of Mundhra Bullion Pvt., Ltd., would be carrying smuggled gold bars from Kolkatta to Chennai by Spice Jet flight SG324 arriving at Chennai on 14.10.2013 was intercepted at the Chennai Airport by the Customs and the DRI officials. The petitioner was travelling along with his minor son and was found carrying a small hand bag, a trolley bag and while his son was carrying a small shoulder bag. The petitioner is said to have stated that he has around 15kg of gold bars in his small hand bag. After the petitioner's son was sent home in the petitioner's car, which was waiting at the Airport, the contents of the bag carried by the petitioner was examined and it was found to contain 296 rectangular cut pieces of gold bars. The officers who had examined the same, found that the markings on the gold bars have been erased. However on a closure scrutiny, it appeared to contain foreign markings. The petitioner stated that he received the gold bars from one Mr.Goutham Chakraborty outside the Kolkata Airport and the gold bars were smuggled into India from Bangladesh and he had received the same through one Raju @ Mukesh of Kolkata, the foreign markings in the gold bars have been removed by his friend Goutham Chakraborty. Enquiry was done with the petitioner as to whether he is in possession of any documents for possession/import of the gold bars. The gold bars were examined by the approved Assayer, who is said to have stated that it is a foreign origin and the residential premises of the petitioner was also searched. Thereafter, the statements were recorded from the petitioner under Section 108 of the Act and further proceedings were taken and mahazar was prepared. The petitioner was arrested on 15.10.2013 and was produced before the Additional Chief Metropolitan Magistrate, EO-1, and remanded to Judicial custody. Subsequently, he was enlarged on bail. After the petitioner was enlarged on bail, a statement was given by him on 20.11.2013 and while giving the second statement, the petitioner appears to have stated that certain portions of the statements recorded earlier were incorrect, as he was very tensed at that point of time. However, the rest of the contents of the statement, dated 15.10.2013 were true. Similar statements have been recorded from others and ultimately, the impugned show cause notice came to be issued.