VINOD KUMAR AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. Heard forthwith.

(2.) The Petitioner is engaged in the business of export of garments, brassware, machinery and machinery parts as a partner of M/s. Agarwal Overseas Corporation. The Petitioner is also the Managing Director of M/s. Admanum Finance Limited, a company incorporated under the Companies Act, 1956 and engaged inter alia in the purchase, leasing and financing of vehicles and export of various manufactured goods. A show cause notice was issued amongst others to the Petitioner on 31-5-1999 for illegally exporting of bicycle parts. Pursuant to the show cause notice and the proceedings thereto an order came to be passed on 29-9-2000 against M/s. Agarwal Overseas Corporation and M/s. Admanum Finance Limited. Parties aggrieved have preferred an appeal.

(3.) A criminal case bearing No. 29/CW/04 has been registered against the Petitioner and one: M/s. Shah Mohamad Mukhla in the court of Chief Metropolitan Magistrate, Esplanade, Mumbai under Section 135(1) (ii) of the Customs Act, 1962 and Section 120B of the Indian Penal Code, 1860. The petitioner on 12-11-2006 made an application before the Compounding Authority for compounding of offences as set out in the complaint dated 13-2- 2004 under the Customs (Compounding Offences) Rules, 2005. The Respondent No. 3 as the Compounding Authority, without dealing with the various arguments advanced by the petitioner rejected the application only on the basis of instructions contained in the CBEC Circular No. 54/2005-Cus., dated 30-12-2005. That circular sets out that the Compounding Authority shall reject all applications where alongwith an offence under the Customs Act, any offence is al1eged to have been committed under the Indian Penal Code, 1860. The Petitioner by the present Petition has challenged the Circular dated 30-12-2005 and has also sought a mandamus to direct Respondent No. 2, the Central Board of Excise and Customs to withdraw the Circular dated 30-12-2005. Though no relief has been sought for quashing the order rejecting the application for compounding of the offences, relief has been sought to decide the Petitioners' application for compounding without being influenced by the Circular dated 30-12-2005.