KAMALA BAI Vs. STATE

JUDGEMENT

(1.) This revision petition is directed against the dismissal of discharge petition filed by the petitioners herein, who are the accused in E.O.C.C.No.331/2005 on the file of the Additional Chief Metropolitan Magistrate (EOI), Egmore, Chennai 600 008.

(2.) The contention of the petitioners before the trial Court for discharge is that they were prosecuted for the offence under Sections 120B r/w 420, 468, 471 IPC and Sections 132 and 135 of the Customs Act for the alleged mis-declaration of goods imported in to India under duty exemption entitlement certificate scheme[DEEC] using false and fabricated documents as genuine. Pending investigation of the case, Government of India introduced Kar Vivad Samadhan Scheme, 1998 wherein cases of this nature were allowed to be settled under the scheme and such settlement will immune the parties from all prosecutions arising out of such mis-declaration. Since they are immuned from criminal prosecution, in view of the settlement under Kar Vivad Samadhan Scheme 1998, no prosecution could be continued.

(3.) The contention raised by the petitioners before the trial Court did not find favour. Hence, the present revision petition is preferred on the ground that the facts of the case squarely falls within the ratio laid down before the Hon'ble Supreme Court in Hira Lal Hari Lal Bhagwati v. C.B.I., New Delhi, 2003 3 CTC 356. Kar Vivad Samadhan Scheme 1998, which came into force on 22.10.1998 extended immunity to persons, who declared and accepted the claim of the department and the duty determined by the department. Availing the said scheme, the petitions submitted Form 2B under Rule 4(b) of Kar Vivad Samadhan Scheme 1998 and pursuant to that, the Commissioner of Customs Chennai Port had passed proceedings on 22.12.1998 wherein it is certified that full and final settlement of tax arrears under Section 91 of Finance (No.2) Act, 1998 paid under Kar Vivad Samadhan Scheme. Despite the payment of duty assessed by the Department and issuance of certificate for full settlement granting immunity from instituting any proceedings for prosecution for any offence under indirect tax enactment or from imposition of penalty under the said enactment, the prosecution has filed additional final report on 03.05.2002 by including offence under Section 132 and 135 of Customs Act, 1962 besides under Sections 120B r/w 420, 468, 471 of IPC. The trial Court failed to take note of the scope of Kar Vivad Samadhan Scheme 1998 and the extent of immunity granted under the Scheme. It has erroneously dismissed the discharge petition, which requires consideration.