Dipakkumar Dharamsinhbhai Kakadiya Vs Directorate of Revenue Intelligence (Bombay High Court)
Bombay High Court held that anticipatory bail application in alleged customs duty evasion case allowed since the applicants have demonstrated their willingness to pursue the statutory remedy of compounding the alleged offence.
Facts- The applicants apprehend arrest and coercive action in connection with allegations involving both compoundable and non-baliable offences punishable under Sections 132 and 135 of the Customs Act, 1962. The investigation pertains to alleged acts of misdeclaration in the importation of goods, primarily walnuts, which are classified as freely importable items. These imports were mainly routed through the Nhava-Sheva Port. The DRI accuses the applicants of deliberately undervaluing the imported goods by submitting manipulated and fabricated invoices to evade customs duties. The transactions in question were carried out in the names of several entities: M/s Deepak Trading Company, M/s Angel Enterprises, M/s Deepak Kirana Stores, and M/s BV FEB.
Conclusion- The object of the compounding mechanism is to ensure enforcement of the Act while providing a route for voluntary compliance and avoidance of protracted litigation or incarceration. In the past, the Courts extended interim protection to the applicants therein during the pending investigation under the Customs Act and the Central Excise Act.
