(1.) The Petitioner has challenged the Detention Order No.673/06/2006CUS VIII dated 5th May, 2006 issued by the Joint Secretary, Government of India, Ministry of Finance, Department of Revenue, New Delhi under Section 3(1) of The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) , and has applied for the issuance of writ of Hebeas Corpus or any other appropriate Writ, Order with direction for quashing and setting aside the impugned order.
(2.) The impugned order dated 5th May, 2006 came to be issued upon receipt of certain intelligence reports relating to export transactions of the Petitioner's Company M/s. Sai Shradha Exim Pvt. Ltd. The company premises was searched on 29th November, 2005 resulting in incriminating documents showing exported pharmaceutical drugs to the extent of Rs.10 crores, corresponding DEPB of Rs.1.15 crores was claimed on the aggregate value of the said goods. Those goods were declared as pharmaceutical drugs to the extent of value of Rs.1.52 Crores manufactured by one M/s. Surya Pharmaceuticals under its DEEC license.
(3.) The Detention Order shows that the invoices recovered under the said search showed purchase of soapstone powder and empty carbuoys (barrels) delivered to the godown of one M/s. Petrosolv India Company (Petrosolv) at Mhape, New Mumbai. On 30th November, 2005 a panchanama was executed, statements were recorded, certain documents were seized and the deliveries of certain drums of pharmaceutical drugs were detained. Thereafter, statements of several witnesses came to be recorded and further panchanamas were prepared. One statement specifically relied upon by the Detention Authority in para 3 of the Detention Order is that of one Anand Divekar, an employee of Petrosolv. A panchanama as well as seizure memo were prepared and certain labels, papers and other documents were seized on 30th November, 2005. Statement of Divekar shows that he changed the labels on the barrels and delivered them to various purchasing parties on cash and consequently diverted the exported goods into local market.