Retracted Customs Statement and revisional bail interference upheld in a serious smuggling case

In a customs smuggling matter involving silver, a retracted statement recorded under Section 108 of the Customs Act was treated as having prima facie evidentiary value at the bail stage. The HC noted that such a statement may still support the prosecution if found reliable in light of surrounding circumstances, and an earlier observation in anticipatory bail proceedings did not bind the revisional court. Where the bail order rested on irrelevant considerations and the record indicated prima facie involvement, risk of absconding, and possible tampering with evidence, revisional interference was justified. The cancellation of bail was therefore upheld.

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Issues: Whether the order releasing the accused on bail in a customs smuggling case involving silver worth more than Rs. 6 crores was liable to be set aside in revision.

Analysis: The petition challenged cancellation of bail on the basis that the only material was retracted statements of co-accused and that those statements were allegedly obtained under threat and coercion. It was held that a retracted statement under Section 108 of the Customs Act is not without evidentiary value and may support a conviction if found reliable and trustworthy in the light of surrounding circumstances. At the bail stage, the statements were to be treated as prima facie voluntary, and the earlier observation in anticipatory bail proceedings did not prevent the revisional court from independently assessing the material. The offence was treated as a serious economic offence against the nation, and the accused's conduct showed a likelihood of avoiding process and possibly tampering with evidence. The revisional court was therefore justified in interfering with the bail order, which had been passed on irrelevant considerations.

Conclusion: The cancellation of bail was upheld and the revision petition challenging that cancellation was rejected.

Final Conclusion: The order releasing the accused on bail was not sustainable, and the revisional interference restoring custody was sustained.

Ratio Decidendi: In a serious economic offence, a revisional court may set aside a bail order granted on irrelevant considerations where the material shows prima facie involvement, likelihood of absconding, or possible tampering with evidence, and a retracted statement under Section 108 of the Customs Act may still have evidentiary value at the bail stage.

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