Customs Act Grants Unfettered Investigative Powers when there is an Infraction: Patna HC [Read Order]

The Patna High Court has held in a recent judgement that the Customs Act, 1962 provides 'unfettered power' to investigate where there are reasons to believe that there has been infraction of its provisions.

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The petitioner, Bishal Roadways, requested the discharge of 304 bags and a truck that contained 20,520 kg of betel nuts that had been seized by Customs (Preventive) officials in Muzaffarpur, Bihar, in January 2020. The petitioners further claimed that the seizure and confiscation procedures were initiated beyond the bounds of the Customs Act.

According to the case's factual matrix, the Integrated Anti-Smuggling Unit had a "reasonable belief" that the seized consignment was of foreign origin, specifically Indonesian betel nuts. The petitioners claimed the commodities and vehicle were perishable and demanded their quick release in exchange for cash and bank guarantees. The items and vehicle had been left out in the open. There was also a challenge to the legitimacy of the Customs Act proceedings.

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However, the Customs authorities contested the writ case's maintainability, claiming that Shyama Kant Choudhary, who filed the petition on Bishal Roadways' behalf, had not disclosed the extent of his authorization. In addition, Amit Mishra, the vehicle's registered owner, had neither requested the vehicle's release or given anyone permission to do so.

Since the investigation is ongoing and still in its early stages, the Court believed that any interference in the seizure proceedings would have the effect of impeding and stifling proper investigation and adjudication. Therefore, it decided not to go into the merits of the imputations because doing so would harm the petitioners' case.

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According to the Court, it would be appropriate to avoid delving into the case's merits because doing so could harm the owners of the goods or vehicle because the material on file initially suggested a suspicious and questionable transaction and the respondents raised a serious challenge to the maintainability of the current writ petition. It was appropriate to give the petitioners the freedom to bring up every point brought up before the respondent Custom authorities at the right time.

Justice Mohit Kumar Shah noted that the Customs Act gives unrestricted authority to investigate when there are grounds to suspect that a provision of the Act has been broken, and that the investigation cannot be stopped abruptly on the basis of specific technicalities.

When the matter was brought forward, the Court ordered the respondent Custom authorities to take it into consideration in line with the law and issue the necessary orders as soon as possible. Within six months of today, it is anticipated that the investigation and any adjudication procedures that result from it will be finished.

To Read the full text of the Order CLICK HERE

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