The Delhi High Court has held that proceedings u/s 135(1)(a) of Customs Act can’t be initiated against value of the goods less than Rs.1 Crore.
The petitioner filed the petition to quash the order under Sections 132 and 135(1)(a) of the Customs Act, 1962.Director of Revenue Intelligence filed a criminal complaint Case bearing CC No. 75/1/13 under Section 132 and 135 (1)(a) of the Act based on intelligence reports that petitioner M/s Elgin Electronics, was in the business of importing public address systems, sound systems for auditorium etc. without payment of customs duty. The search was conducted by the DRI at the premises of the firm and detained the goods imported. The petitioner furnished an approximate value of the goods vide letter dated 1st September 2009, but no document regarding the same was given to the DRI.
It was further alleged that documents about retail Invoices raised by the firm were found to be fake. Investigation revealed that the accused persons had committed offences punishable under Sections 132 and 135(1)(a) of the Act. The petitioner submitted that no case under Section 132 of the Act is made out against the petitioners as admittedly the petitioners never made, signed, or used any document, declaration or statement in the course of the business of the firm knowingly or under a belief that such declaration, document or statement was false. It was further submitted that there is no violation as contemplated under Section 111 of the Act as the petitioners are neither importers of goods nor associated in any capacity with any illegal import of the subject goods and stated that as per Section 135(1)(a) of the Customs Act, action can only be taken in respect of any goods, where the market price of which exceeds Rs.1 Crore.
Justice Chandra Dhari Singh observed that there was nothing to show that the petitioners made any false declaration or prepared false documents and he was not liable to be prosecuted under Section 132 of the Act. The Court held thatthe proceeding against the petitioner under Section 135(1)(a) of the Actcannot be initiated as the valuation of the goods was less than Rs.1 Crore andthe petition was allowed. Mr Mukesh Anand appeared on behalf of the petitioner and Mr Raghuvinder Varma appeared on behalf of the respondent.
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