P K GHOSH Vs. KAILASH KUMAR MAZODIA

JUDGEMENT

(1.) This appeal is directed against the judgment and Order, dated 19-4-1994 passed by a learned single Judge of this Court in writ application marked as Matter No. 1942 of 1986 whereby the learned trial Judge allowed the writ petition filed by the respondent herein challenging the legality of search and seizure, dated 8-11-1986, 9-11-1986 & 10-11-1986 conducted by the appellants as also the summons dated 12-11-1986 issued by the appellants, D.R.I. Authorities, Calcutta under Section 108 of the Customs Act, 1962.

(2.) The writ petitioner under the name and style of Steel and Allied Product Exporters at 53D Chowl Patty Road, Calcutta used to manufacture and export various engineering goods. The petitioner obtained advance licence under Duty Exemption Scheme up to the value of Rs. 38,86,000/- for import of G.P. Sheets/Coil Secondary/Prime quality 399 M.T. The Licence was valid for 18 months, subject to the condition that the petitioner was required to export various goods at F.O.B. value of Rs. 5680805/- of total 1105 M.T. and that the goods imported thereunder were to be utilised in accordance with the Notification No. 117/602/14/78-DBK, dated 9-6-1978 read with the Notification No. GSR, dated 5-4-1982. The licence also provided that in the event of failure to fulfil the export obligation within the prescribed time the licence holder shall, inter alia, pay the Customs Authority duty proportionate to the material or corresponding to the product not exported. The petitioner was further required to intimate the Licensing Authority the actual date of clearance of first consignment of imported goods within 7 days and send quarterly returns of all imports made, goods manufactured and goods exported. The petitioner had to execute a bond and guarantee agreement of the value of Rs. 3,31,000/- before the Licensing Authority. Under above terms and conditions of the licence the writ petitioner exported materials during the period from 8-8-1986 to 22-9-1986 and earned substantial amount of U.S. dollars which was duly deposited to the Reserve Bank of India.

(3.) The petitioner imported on 7-8-1986 about 271.620 M.T. of G.P. sheets in 64 coils and further imported 23.970 M.T. G.P. sheets in 6 coils under Invoice No...dated 27-8-1986. The goods of both the occasion were cleared for home consumption by Calcutta Customs Authority from the Calcutta Port. The petitioner having no facility of its own factory by decoiling and cutting the coils transported the warehouse of M/s. C.K. Steel Private Limited for decoiling 70 coils and petitioner required the said C.K. Steel private Limited to deliver 64 coils after decoiling on 4-11-1986. M/s. C.K. Steel Private Limited thereupon issued 64 delivery slips in respect of each of the said 64 coils. On 7-11-1986 Rajesh Mazodia arranged a truck bearing No. WGH-7495 for delivery of two decoils from the said warehouse of M/s. C.K. Steel Private Limited and transport of the same to the petitioner's factory. Due to heavy rain the goods could not be delivered by the transporters parked the said truck with the goods at his own place and on 9-11-1986 when the said truck with the said goods was moving on Maharshi Debendra Road, Calcutta towards petitioner's factory, the DRI officers seized the said goods under Customs Act. They also seized on 8-11-1986 68 coils together with Truck No. BHB 9219 from the warehouse of M/s. C.K. Steel Private Limited. Thereafter the DRI officers made various search and seizure at the residence and factory of the petitioner and seized various documents therefrom. Against such search and seizure the writ petition was filed before the learned trial Judge praying, inter alia, for the following writs :-