Customs offence bailability turns on Section 104 thresholds; absent those conditions, bail remains available as a matter of right.

Offences under Section 104 of the Customs Act are non-bailable only when they fall within the specific categories in Section 104(6), including duty evasion above fifty lakh rupees, notified prohibited goods, undeclared goods above one crore rupees in market value, or fraudulent drawback or exemption claims above fifty lakh rupees. Where those conditions are not shown, Section 104(7) treats the offence as bailable. On the stated facts, the recovered gold did not meet the statutory value threshold and there was no material showing notified prohibited goods, requisite duty evasion, or covered fraud. Bail could not be refused on investigative discretion alone, and the offence was bailable.

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Issues: Whether the offence alleged against the applicant fell within the non-bailable category under Section 104(6) of the Customs Act, 1962, or was bailable under Section 104(7) of the Customs Act, 1962, and consequently whether bail should be granted.

Analysis: Section 104(6) makes an offence under Section 135 non-bailable only where it relates to one of the specified categories, namely evasion or attempted evasion of duty exceeding fifty lakh rupees, prohibited goods notified under the Act, undeclared goods with market price exceeding one crore rupees, or fraudulent availment of drawback or exemption exceeding fifty lakh rupees. Section 104(7) makes all other offences under the Act bailable. On the facts, the recovered gold did not have a market price exceeding one crore rupees, and the record did not show that the goods were notified prohibited goods, nor that duty evasion exceeded fifty lakh rupees, nor any fraud of the kind covered by clause (d). In a bailable offence, the right to bail is treated as absolute and discretionary refusal is not warranted on merits of investigation alone.

Conclusion: The offence was bailable under Section 104(7) of the Customs Act, 1962, and the applicant was entitled to bail.

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