UDHAY NAYAR Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The petitioner, who is the father of the detenu, challenges the order of detention, dated 4.2.2009, passed by the second respondent against the detenu viz., Mani @ Estate Mani, under Section 3(1)(i) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act. 1974 (Central Act 52 of 1974).

(2.) On 21 22.1.2009. the officers of Directorate of Revenue Intelligence (DRI), Thoothukudi. conducted search of the premises of Baywoods Exim, owned by the detenu in the presence of independent witnesses and in the presence of one Ramesh, In-charge of the said place and his assistant one Mariappan, based on specific intelligence to the effect that Baywoods Exim imports 'betel nuts" by misdeclaring the same as 'cashew nuts" in the import documents; that while moving the containers with the permission of cus-toms under the guise of being taken to CWC CFS from Thoothukudi Port (import Section), the same are taken to the premises of Baywood Exim, where the seals of the containers are broken-open and the betel nut bags are unloaded from the containers and substituted with cashew nut bags and that the containers are then locked with the substituted duplicate seals kept in the company and taken to CFS for Customs examination after Filing of Bill of Entry; that Baywoods Exim Firm is engaged in such evasion of duty in large scale, as higher import duty is levied for the import of betel nuts and no Customs Duty is levied for the import of cashew nuts.

(3.) During search, DRI officers found that a green colour cargo container No. CLHU-2233488 with one time lock MAERSK ML ID 54 9898, laden on container lorry KA-01-AC-5457 was about to start and leave the premises; that adjacent to the above said lorry, a lorry bearing Registration No. KA-01-B-2111 was found fully loaded with gunny bags containing betel nuts; that bags of betel nuts and bags of cashew nuts were stacked there on the floor; that on enquiry about the goods in the lorry and stacked on the floor, the said Ramesh informed that the betel nut bags loaded in the lorry were the betel nut bags unloaded from the container CLHU 2233488 after breaking open the seal of the container and that the betel nut bags stacked on the floor were the balance of the betel nuts off-loaded from the imported containers three days back and sent out in 8 lorries: that the cashew nut bags (raw cashew nuts) stacked on the floor were intended to be substituted in place of the betel nut bags from the import containers arriving today. During that time, another lorry bearing Registration No. TN-69-P-9087, laden with container MSKU 2855042 and with one time lock MAERSK ML ID 626929, driven by one Kumar, entered the said premises; that when the DRI officers broke open the seal of the aforesaid container, it was found stuffed with betel nut bags; that on enquiry, the said Ramesh, Mariappan and driver Kumar informed that the above said container, as per the orders of the detenu was brought to the above said place for exchange of the goods: that in all. 488 bags of betel nuts weighing 43.470 MTs. and 607 bags of raw cashew nuts weighing 43.490 MTs were found and the officers of DRI seized them under the provisions of the Customs Act, 1962 under a mahazar; that the officers also seized the container lorries and the two broken parts of the seal mentioned MAERSK ML ID 626931 which were found near the container lorries.