2023 (2) TMI 401 - HC - Customs

Court upholds CBI's jurisdiction in forgery case, dismisses petition challenging charge sheet

The court dismissed the petition seeking quashing of the charge sheet and summoning order in a case involving misuse of Duty Exemption Pass Book and Duty ... Evasion of custom duty - whether the Customs Act prohibits the criminal prosecution under the IPC - Forging the shipping bills and submitting bogus sipping bills with criminal conspiracy - involvement of certain racketeers in misuse of Duty Exemption Pass Book (DEPB) and Duty Exemption Entitlement Certificate (DEEC) Scheme by using forged shipping bills in the name of fictitious as well as existing firms for obtaining DEPBs or for fulfilling export obligation against DEEC Licenses - Offence under Sections 132, 133, 134, 135 and 135A of the Customs Act - HELD THAT:- The primary allegation is of forging the shipping bills and causing loss to the tune of Rs.17 Crores of custom duty to the Government of India. Forging of document and cheating etc. are not the offences which are defined under the Customs Act. The judgement relied upon by the learned counsel for the petitioner in Union of India Vs. Ashok Kumar Sharma and others [2020 (8) TMI 827 - SUPREME COURT] has no relevance to the facts of the present case as in that case the offence is squarely covered within the ambit of the special statute such as Drugs and Cosmetics Act. The investigating agency or the police would have jurisdiction to investigate the offence committed under the IPC. There may be some overlapping of two statues regarding the offence committed under IPC as well as under the Customs Act, but that would not preclude the registration of the FIR, investigating the offence and taking cognizance and summoning an accused, if after investigation it has been found that such an accused has committed the offence under the IPC besides the Customs Act. There are no merit in the present petition - petition dismissed. Issues:- Quashing of charge sheet and summoning order- Misuse of Duty Exemption Pass Book and Duty Exemption Entitlement Certificate- Investigation findings regarding firms involved in fraudulent activities- Jurisdiction of Customs Act vs. Indian Penal Code- Allegations of forging shipping bills and evasion of custom duty- Cognizance and summoning by CBI Court- Jurisdiction of CBI in investigating IPC offenses- Relevant legal provisions and guidelinesQuashing of Charge Sheet and Summoning Order:The petitioner sought quashing of the charge sheet and summoning order in a case involving misuse of Duty Exemption Pass Book (DEPB) and Duty Exemption Entitlement Certificate (DEEC) Scheme. The petition challenged the entire proceedings based on these documents.Misuse of Duty Exemption Schemes:The investigation revealed a scheme involving racketeers misusing DEPB and DEEC by using forged shipping bills in the names of fictitious or existing firms to obtain benefits. The Directorate of Revenue Intelligence identified firms involved in the scheme, leading to cancellation of licenses and discovery of fraudulent practices.Jurisdiction of Customs Act vs. Indian Penal Code:The Directorate of Revenue Intelligence recommended further investigation under the Indian Penal Code (IPC) due to offenses falling under IPC rather than the Customs Act. This recommendation led to the CBI registering a case under IPC sections against entities involved in misusing DEPBs and DEEC Licenses.Allegations of Forging Shipping Bills and Evasion of Custom Duty:The investigation implicated the petitioner in forging shipping bills, causing a loss of custom duty to the government. The petitioner was accused of making duty-free imports without fulfilling export obligations, leading to charges under IPC sections related to forgery and conspiracy.Cognizance and Summoning by CBI Court:The petitioner challenged the jurisdiction of the CBI Court, arguing that only the Customs Court could take cognizance under the Customs Act. The petitioner contended that the CBI lacked jurisdiction to investigate and file charges under IPC sections.Jurisdiction of CBI in Investigating IPC Offenses:The CBI defended its jurisdiction to investigate IPC offenses, stating that forging documents and cheating fall under IPC rather than the Customs Act. The CBI emphasized that the criminal court could proceed based on the charge sheet for IPC offenses.Relevant Legal Provisions and Guidelines:The court analyzed the legal provisions and guidelines related to the jurisdiction of the Customs Act versus the IPC in prosecuting offenses. It concluded that forging documents and cheating are offenses under the IPC, justifying the CBI's investigation and the CBI Court's cognizance and summoning orders.In the final judgment, the court dismissed the petition, stating that the offenses involving forging documents and causing loss of custom duty fell under the IPC, allowing the CBI's investigation and the CBI Court's proceedings to continue without jurisdictional issues.