Naresh Kumar Agarwala Vs Union of India (District Court Alipurduar)
A District Court in Alipurduar has rejected the pre-arrest bail application of Naresh Kumar Agarwala, who faces charges under sections 135(1)(a)(ii) and 135(1)(b)(i) of the Customs Act, 1962. The case, C.R. Case No.1027-2024, centers on allegations of large-scale smuggling of cement from Bhutan to India, leading to an alleged evasion of Integrated Goods and Services Tax (IGST) amounting to approximately ₹17.73 crores. Agarwala’s counsel argued that the prosecution’s data from the Directorate of Revenue Intelligence (DRI) contained factual inaccuracies and was “inaccurate and imaginary.” They pointed to discrepancies between Bhutanese export data and Indian import records, claiming the difference suggested an IGST evasion of ₹178.226 lakhs, far less than alleged. Furthermore, the defense contended there was no logical motive for smuggling cement, as IGST paid on imports is eligible for Input Tax Credit, and no customs duty is applicable on Bhutanese cement. They also raised legal points, asserting that prosecution should fall under the IGST Act, not the Customs Act, and cited Supreme Court precedents on bail not being denied even in grave economic offenses. The defense emphasized that the burden of proof lay with the DRI, and mere suspicion should not justify arrest.
