Karnataka High Court
The Dy Commissioner Of Customs vs M/S Chiramith Precision on 13 July, 2009
Author: Subhash B.Adi
Bench: Subhash B.Adi
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2' O {X} ("D {"3 is?» g\ 1 ("J til' ~ 3 mi TI"-{E HiGH COURT C}? KARNESTAKA AT BANGALORE HATED THIS TI"-I15: 13% ms' 0? JULY, 2999 BEFORE THE HC}N'BLE zv:R..JUSr:<::E st§BHAsH~Va'--;é;:%,:: TI "
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'F'}1e*Deputy Commissiongr of A _ ._ _. Ctlatoms (Praven'£ive}, "'C__I--ustom$ E{.<Z2)3.l$iE2,. Panambur, New Mangaiors: 6€sQ1(}}ig0.}
-- [j * g.§"_:»ia"f§*:v:1§4'§{:r»s£R (By Sri,Urva1_ if; V " VV ARE:
3.. My 3: '(_?-him;u'3.:Z1_:b; ~§?':*s;ci5i€§fl {1:;dia) Shiliga Campiezx, Ragefi, 3_.'éia;:*ig.*a5:1{;rc:¢ Repfmy its E'&§:=2};1ag,i:1g~_Pm:in5;t3, Sri.E3._f€a:na<::ha13zd:*a.'' "
. 341;' s.'?é&va3&c indiiéifies Pv"i.Ltd.., Fuigr-5331, Rtapby its ' Matgaging »--§11'ee:¢_1? S131. B.Ramacham:1ra, 3? ' Eiiéfés, ;:EI}J;f':¥1f)I'iS€S, V -- F't:.f:1:J'.1é;1y Industrial Cerrumpeund, 'V.I§tiam1i,"§£ia::1ga1ore, Rapgby its x V " Smt.J§?0ti Ramachaném.
_ S;i;}3.Ramachandra, 8/0 ~ " Gamgayya Achar, R/a "Sakectha", _ -»€3pp.Samina1y View, P.G,Kankanady, Ma11ga1c>m~5'?5 003.
5. Sri.S.R.Dam}e, Sjo Rd Damifi, Rla "Stinivas", Padil, is/§a3:1ga10n:--5"I'$ 90?. 6, Smi.J}*9{i1i Ramachandra, W/0' B. Ramachandra, R / a "Sa.ke::t11a", Op§.Semi;1ary View, 13.0 iriankanady, M.-angalom~»S75 O03.' ..=RE§SP(f}N {B}; M] 3.(}:1ha Associates, 5(iVf§.:f iii! This CRL. P is flied under Sgéiicn 4312' of (L1?-'P.€3_ jg'3i°.?q;ii1g to call for the records in {3r1,P.No.f%f§'}8f 200'1*._a1u1'd-- h=:-1:z':-,ar the said. case: on merits takmg into <::£.:=z:1":~;i_de::1j:aticr:1"t}3:%: }:)§'iC1d611C'_§<' er:-f '(ha tax referred cas<és"*V~ ¢_N<3.i'?-_:2? 1'-,{12f}G'<3; chailénging the order of the CEESTAT data! 2:{);.()?%.[2*3G7'1j '~p::'12.;:1r£13.g 'wafers '(J13 E-ioxgxfbie High Court in Tax Re-farm-'dV (:ias;s: NQ V;.1?<_r'21/2004: and re~<:a11 the ordazr dated ,i3'G'.'3{2.Q{}~1 "»Lpas::ed" ';i*}j:" the learned single: Judge of fd1is3«_Ci311I*3::_i:I}. ;Cr1lP;«Né.f$fi48]f20{) 1. This "o.fr:;._.f(;r_ on this day, 'aha court 1:::1ac:'_i_¢_Vf}1'e.V.ft>?ié72}§zi1:z;,_{;'~'--» V ~ A' Q R. J3 'E313 §t:--4iiienér__ 11.a$3.'~.@.'1s§ought far recalling the order t,§1is'éou:%t.__¢.§11 Cr1KP.?%cs.3648/299}. d::<::icie§ 03:1 '''1.VA3£i,i3'».20<':x};~.% :
g 2. "*r:;e:"V:§esig§sn£:ents had, fiiéd a_cy1,P.:ms5=a8g2@{:1 umm j§i3e":.'::;i:}.:1 of Cr.P'.{'3 izfier aka 5&3}-ting fer quashing sf {E316 .';;1."*r.f;Vw< :'eéA'<;1i21.g3 in CZC.N<;:a.8'? /2881 than pending on the flit: of 1 'Ad§,1.C,J.M., Bangalore: w11emin the procrsss was sréared " against {ha respcnizdeizts far an vgsffence yufiishabie unéer Secéian 133 (if the Custems A.c:i:.. gag; n. -3 V ,»__,'.,» ,3, ,9?
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3. T115 patitianerj authority 113:1 filed a private cemplaint tméer Section '.3380 cvf ($229.8 for an Qfience fiunishable Section 135 of Custcsms Act. The order of issuf: ofu M was sailed in question baibre this cmuri bf; i}1e.$3sp tz:1ti.é§1t._o1%. ' "
the ground that the criminal pmsectsiiisnk Q16: m:5.a'i11_t':3§1:.a3,:l§«i§:T_T £11 View of the order passcd hyftlge Cfifitfiims If 3139 contanded that the fmdi§1g'ft:§:Ti3reieci in favcur of the respcndsnts: &..1;_€i V:fi:;~..ihe béiiiefiis of the respondeziis nor it wfil afiécisi;'fl1é' 'rightS.._§5fAA.¥;h.fifispartmeni ta gmgecute the ;}5fi::;'i";iQi'1srk
4. 'E7333 <:a3:2fijf. é:c3I1;3fi£¥¢f;::{gfiha met that CQmI}i£iSSiOi'i61" had passeé axi efécr mE1-- impfising paxxaltjg of payment ef E1:-gas _andu 'a1$_€i co:> t::.fiscatio:r: of seized goods. The V iiiesgén agspeai befere the Trihunai and the 'A*§>fib:;;§g1v. g:7:¢;¥' V"m%.%a~ ring both sides had recorded a fmding. '3'h.«::A:s-€:_ ifieré extrasteé at ggara 3 at" page '? of tbs ardfir " ' . __ bf this éogtfi:
"T6 sum up! wefind Iitaf M {f} The order of £326 Iearrted Cvmrnissioner demandzhg ciuiy on spares inzpotied by the appeifants unit z2iz,; rfihirafizizh Pmcisian (India) during the pericd 1§92 to 199?: mg the graumi ffmf the stanza were dfverietifor being usedfjr the macfzinetiy fnszailed at Ta.va,::i'9c In&ustr:"es Pvt. Ltd. and C'h€rag Enterprises} £3 net sustainabfe in &¢¢ Crl.?.%%o.2GQ§.2f3C3?
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33:0, in time fight of the facts expfained and findings arrived' in ihefavregoirzg paraa
(ii) 'I?1e Ld. Cammissioner erred fn haId:'.;~'1g' {had the Appelfanis vfzi, Chirczznith Prec:%i02fij--.._L' ;_.
(Im:Eia} diverted raw materiais imported' }. to Tavadec Indzzstrie-$ Pvt. Ltd, far" being. used' Vz':1. ' . fhe praducrs fzrr being rnaiwfarrfurejd and séiciv £0"
ms farmers in the domestic; m;_:{r}ce2z'*_ xi*£t?zg_3u§ .__L add' umhg any praper evidenée Ea? T Suppafi _t}:,g ~ same. _
(iii) Tfze L&.CarIt:?2ié'£,=§é}'ner é:-:4:-2d 'fin heldirtg that me appeil_g1riie3_ $332., Predsian (India,).'i£5gga1I;é; expfifléd sparés is Mr.Didier of Switémriamf fgzéif :ia§3'e_gée:§lg seiiing payment due ta hint. z;?'€:}uj141_....€4;:it3%l€:€t1g any ev1'denmf0ra!he S£1Z?<"«;6.» .1350 trtsg off on any appeffaniurzdér S;2ciz'0r1_ jE Inf? "aff~f§1e éiusioms Ac:
I962h§§S=,_be§é§1ifrsiciftwliiiited, """ ";'iy)7iThe'€}i£i.C0zitrR£s$¥ér:er erred in iwfding ffiai _fhe V' <:;ga7g2éVEEaIiI£$V"':2i2:;, f Chiramaih Predsian £rit,§2'a}_ :"m;3ar£:é'5:{ 'd1{.t§,r.. free raw nzaierials and cfamiesiineéy. 'e:?,f2;er4ie§;§ flee same 139 Chirag Enierpfises 'Taimdec Industries Pvi.L£d,, {in {tine guise high genemtion cf waste} as against _"4'}fhe__p:;zpasé'f0r...wf';z'a?z the same were irrtparied, _ wii}i0uiA~.zec}1n£ca,Z3y verzfying the same. _ .. mfiifarg, ..Ch£ra:m'ih Precisian (India) have p*:'o:iz.;<:'}s£i repay?' ceritfieci by the Regianai j Cellege, percentage af scrap generaied ciamng the mums Gnihe Suraticaf abeui {he (ff irganufaaiure of varieus OC¥?3'f?}7€3?"l€'I"£iS) {v} A8 rm mnfiscaéien made?' Seciicrz. 1 I 2 of V' :1'usia>nzs Act, 1962 of any £mported gaaads is ' "being upheid, irrtpaaiifan ofpemziiy under' Secfior: I I2 aaiiedfar arid are required to be set aside' {vi} Pemxiiies imposed under Seciisn I E4 of Cusiams Ad I 962 ccmno! be upheld.
(vii) The orders ef apgrspriaiion sf amaunis are no: fegai and pamper and {he refiznci 0f the same is reqzsired R} be made.
{viii} Wm {impugned arder has been passed without mnsidering ihe various subrnissions made by the appelfanfs, which shaws {:3 dear nenflppiizufian of rnind on the part of the Ld'_C0mm£ssiener. The findings of the " T Ld. Commissioner in {fee impugned order arer , purely on assumgxfions and presunz;9£z';;u=33,» ~ witharut any valid or corroborative evideruu---:.. for 5' substantiating the same? and contradictory" ' findings are required {G be seImMc:;side 5:}"h"§h£Se"r ' gmunds itself.' & .3. " a
(ix) The eniire proceedings' '}'_h:1i?2.'; the isgaué »':'§f7 $}z0w cause notice {hat the-_ £.::iju;:€f<j::;¢'o:7z_. _ cancluded by f1Q?1'C>9flIp£i{Z7"Z£}£:? ~Qf cf Eaard' are void and are required to base? asicie for {hat reason af67'*Jt?»..f * Reijging on fifmstt sf tbs Apex ' Ciourt aigd _?:.h§,$ Courii at para 18 ebaerved as under: ' ' & gin. view 0f the fads and ciraznasianoes sf 2 _, 'V the Cz2see5,'{21__t§*ze opinian of Skis oaurt, the ratio Iaid :f0_:);=»3i; 1'n'»:i1ge saicfi fiecisions wcuici cxime 10 the ' '-.ass£siané:e'of the peiitianers. "' 'l'Zfi:£$:'i~<:ou:"€ piasing reliazzcc on the judgment mpartefi 1992 SC 1815 hsid that this court is empawaréd to ' ex§::n':is£ the inherent powers, if the casfi is made out that the u .r§011t;i1111i:1g of pmsecution is abuse of procem of Law and. having mgarfi to the facts and circumstances of the case, this court wbservezri that the €3OI'1§.:{11l83T1Cl'i'3 ef criminal _7._ Apex Court pemsizxg the records found that them is an error in carrier earlier passed arzci had racalled. 83 This is :3 Case where this ccurt 031 merit has f;g_§1I1d that c0:1't:it'1uatior1 of the pmceedings would be the A process of law and ends ofjustica Hfifiidfi that V. Couid be quashed. N0 mistake is Gut '§bT}}" 'l}€;=«:2e1:'::1cci.i:
Senim: counsel The oniy c0ntcI1'ti<$:; ofT"t_; ?:
against the order of the Tfibungj. Q15 Vhaai; petition Tax case :40. 1:?-21 ; 2004"L"cfia:1,e'pg§§1ig- ziateii 2033,2001 and the said' éxnci they art: 110§xiv:c0nVei'1sér§ ixiici {3§3?§i.I§'c:?itio11$ and iiiey and pending.
9. Thais was I10': ';E%1i{,?§:§ {3QI;i'3;€I1€i0i1 .213 such was raised before _'i:_he zeiamed. vvsin:g3@;é;:}§1figc: whiie passing the Qréer in.
'~ ._CrE.,§${:,3_:§{34--$f 2i}51~;:::--:;:* there is any ciezicai mistake or any é:31E}i$S§CfI§»,.A3fi-ili.' %;m: '&:;:~dgr 0fti1i$ Cami. '1"'his <::m,1r'€. vfixéle éeciiiizig t_Eit: e}s;117i§iéf has reiied an the Juafigmczit sf SE16 Apfix ' €:<3ur£' based (33.1 £1226: fmdings arrrivfizi by $116 Tfibunaé x V' hés' f<:;111i§i that "i'n'§3m1ai is the East authoiit}? 011 fnxtiing of {fix-'jig,'-"; .'AA Imztzsking the provisiens cf Sézcttiozi 482 of Cr.P.C, to the 9111631' in tf;r£,P*§'~¥(:a.:3{3*~'i8]'20G1 wcxuifi azximmt, :0 x zfivifiw 91' the Qrdar of tins singlfit judgfl 311% that caflnet E36 *%I:éi "-Y . 9..NG. 2535352? . 23*-L}?
__ _ (inner. under the provisiens sf Cr.P.C- and provisions cf Cr.P.(f3 firms {mt canihr power on the High Cour': ta review thE..r;$1*zfiéz:, Ii"). Further nothing prevented the d.e;3ari:1:z::§:'1i.~« i;1. _ '1§g;"
pmsecuting firm matter from 2804 by department is assisied by the 1egai::E:x;>§é rt for nearly five years new it has ssoughfvfo§'--:*evie\x% <;§£216"zynéiéiz V P161101: 1 find no gxnuads to hxtexfazfiwith tlgstfiéimiiéfir. H Acccrdizlgiy, this pé3titi0I1'.Ai?S "£En$iniS$.cd. KVIW'