Sanction and Section 108 evidence under the Customs Act can support a prima facie trial for fake currency offences.

Sanction for prosecution under the Customs Act functions as an administrative safeguard and is satisfied where the sanction order records the facts and shows consideration of the material, reflecting application of mind. A statement recorded under Section 108 of the Customs Act is admissible unless shown to be involuntary, and recovered fake currency notes with supporting material may establish a prima facie case for trial. The absence of Customs sanction does not negate liability for the distinct offence under Section 489-C of the Indian Penal Code where the evidence independently supports that charge.

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Issues: (i) Whether the discharge order could be sustained on the ground of alleged invalidity of sanction under the Customs Act. (ii) Whether the statement recorded under Section 108 of the Customs Act and the material recovered disclosed a prima facie case for trial, including under Section 489-C of the Indian Penal Code, 1860.

Issue (i): Whether the discharge order could be sustained on the ground of alleged invalidity of sanction under the Customs Act.

Analysis: Sanction for prosecution is an administrative safeguard meant to prevent harassment of the innocent, and not a technical shield for the guilty. Where the sanction order itself narrates the facts and shows that the competent authority considered the material before granting approval, the requirement of application of mind is satisfied. At the stage of pre-charge evidence, the Court was concerned with whether a trial should proceed, not with final proof beyond reasonable doubt.

Conclusion: The objection to sanction was rejected and the discharge could not be upheld on that ground.

Issue (ii): Whether the statement recorded under Section 108 of the Customs Act and the material recovered disclosed a prima facie case for trial, including under Section 489-C of the Indian Penal Code, 1860.

Analysis: A statement recorded under Section 108 of the Customs Act is admissible unless shown to be involuntary. The recovery of a large quantity of fake Indian currency notes, together with the statement and supporting evidence, disclosed material sufficient to put the accused on trial. The absence of sanction under the Customs Act would not erase the distinct offence under Section 489-C of the Indian Penal Code, 1860, which arose on the evidence already recorded.

Conclusion: A prima facie case was made out for trial under the Customs Act and under Section 489-C of the Indian Penal Code, 1860.

Final Conclusion: The discharge order was set aside and the matter was directed to proceed in accordance with law before the Trial Court.

Ratio Decidendi: A sanction order is valid if it reflects consideration of the relevant facts and application of mind, and a statement under Section 108 of the Customs Act remains admissible unless shown to be involuntary; such material can sustain a prima facie case for trial.

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