1992 (1) TMI 106 - HC - Customs

Partnership fraud uncovered in duty exemption case; Court dismisses petition, orders police probe

The Court uncovered extensive fraud involving a partnership firm seeking duty exemption through a writ petition. The unauthorized filing by an individual ... Refund (Customs) - Fraud Issues:1. Fraud committed on the Customs Department and the Court in a writ petition seeking duty exemption.2. Filing of the petition in the name of a partnership firm without authorization.3. Direction for investigation and prosecution of all involved in the fraud.4. Setting aside of the judgment and dismissal of the writ petition.Detailed Analysis:1. The judgment reveals a case where fraud was perpetrated on both the Customs Department and the Court through a writ petition filed by a partnership firm seeking duty exemption. The petition claimed duty exemption based on a previous judgment but was found to be part of a larger fraudulent scheme to secure refunds improperly. The Court noted the fraudulent activities and emphasized the need for a thorough investigation to prosecute all individuals involved, regardless of their position or authority.2. The petition in question was filed in the name of a partnership firm without proper authorization. It was discovered that the petition was actually filed and sworn by an individual partner of the firm, not by the firm itself. This unauthorized filing led to the granting of relief to the petitioners based on false pretenses. Consequently, the Court ruled that the judgment based on this unauthorized petition could not be upheld, and the writ petition was dismissed.3. In response to the extensive fraud uncovered in the case, the Court directed the Commissioner of Police to conduct a detailed investigation and prosecute every person implicated in the fraudulent activities. The Court stressed the seriousness of the offense committed against both the Customs Department and the Court and requested the Commissioner of Police to assign a senior officer to investigate the matter thoroughly. The Court also instructed the Commissioner to provide updates on the progress of the investigation and to ensure that no individual involved in the fraud escapes prosecution.4. As a result of the fraudulent activities and the unauthorized filing of the petition, the Court allowed the appeal, set aside the previous judgment, and dismissed the writ petition. The Court emphasized the gravity of the fraud committed and took decisive action to ensure accountability and justice. The judgment concluded with no order as to costs, indicating the seriousness of the matter at hand and the need for swift and thorough legal action to address the fraudulent conduct.