The Bombay High Court has granted anticipatory bail to a person accused of offences under Section 135 of the Customs Act, 1962, after the Union of India informed the Court that the investigation had concluded and his custodial interrogation was no longer required.
The bench of Justice Prafulla S. Khubalkar confirmed the interim protection earlier granted to the applicant, observing that it had remained in force for more than two years without being misused.
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The applicant submitted that the High Court had initially granted him interim protection through an order dated April 12, 2024. The protection was subsequently extended from time to time and remained operational when the application came up for final consideration.
Dr. Sujay Kantawala, Counsel for the applicant informed the Court that, during the intervening period, the Customs authorities had served a show cause notice upon him under Section 28(4), read with Section 124 of the Customs Act.
Section 28(4) deals with the recovery of customs duty that has not been levied, has been short-levied or has been erroneously refunded in cases involving collusion, wilful misstatement or suppression of facts. Section 124 requires the issuance of a written notice and an opportunity of representation before confiscation or penalty proceedings are decided.
Dr. Kantawala stated that adjudication proceedings had already commenced before the competent authority pursuant to the show cause notice. He consequently argued that the earlier interim protection should be made absolute.
The Special Public Prosecutor appearing for the Union of India confirmed, on instructions, that the investigation had been completed and a show cause notice had been issued to the applicant.
Significantly, the prosecutor made a statement before the Court that the applicant’s custody was no longer required.
Taking note of the department’s stand, the High Court found no reason to discontinue the protection that had been operating since April 2024.
The Court specifically considered that the applicant had not misused the interim protection granted to him. It also took into account the subsequent developments, including the completion of the investigation, issuance of the Customs show cause notice and commencement of adjudication proceedings.
“Considering the fact that the interim protection was granted by this Court by an order dated 12th April, 2024 which is not misused by the applicant and further considering the subsequent developments about issuance of show cause notice and initiation of the adjudication proceedings, the interim protection granted by this Court needs to be confirmed,” the Court observed.
Accordingly, the High Court allowed the anticipatory bail application and confirmed the interim protection granted under its earlier order.
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