TaxTMI 
TaxTMI 
2014 (9) TMI 969
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....rials with great caution and after proper verification. Are we cautious enough? The facts of the case would reflect the reality. 2. By way of this Public Interest Litigation, the petitioner wants a writ of mandamus directing the respondents 1 to 12, to strictly enforce the third respondent's circular in No. 17 (10) 2007 - Explosives, dated 5-3-2010 and further direct the respondents 2 to 11, seize all illegally imported explosives items (particularly Chinese crackers) and destroy the same as per the Explosive Act. The petitioner claiming himself to be a member of the Executive Committee of Adhi Thamilar Peravai states that he is involved in many social activities and also fighting for welfare of fire works employees. He would contend that out of 982 Fireworks Factories in India and 800 factories are running in and around Virudhunagar. About, 5 Lakhs of people are directly or indirectly depending upon the said industry for employment. Sivakasi is fulfilling 90% of all India demand and considerable portion of fireworks are also exported to foreign countries. 3. It is contended by the petitioner that on 14-5-2014, the Assistant District Magistrate (Tahsildar) Sivakasi ....
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....er would submit that there was no complaint by any third party about the Chinese crackers and only the Village Administrative Officer filed a complaint which was registered on 17-5-2014 and the investigation is being done according to law. However, Mr. Anantha Murugan, learned counsel appearing for the petitioner as well as Mr. Santharam Natarajan, counsel appearing for the Tamil Nadu Fireworks & Amorces Manufactures Association, (R15) Sivakasi disputed the said contention. They would submit that the news about the seizure of Chinese crackers appeared in the media on 15-5-2014 itself and even thereafter, the police did not register a case immediately and only on 17-5-2014 registered the case under the Explosives Act. 7. The officer attached to the Deputy Chief Controller of Explosives, Virudhunagar, who was present in the Court informed that so far, no information had been received by his office. The Additional Government Pleader would submit that information was already given. 8. When the matter was called on 24-5-2014, respondents 9 to 13 were present. Mr. Gupta, the Deputy Chief Controller of Explosives, Virudhunagar, would submit that so far, an intimation alone....
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....toms (Preventive) Trichy, would submit that the Customs authorities have been alerted to be vigilant, in view of clandestine import of Chinese Firecracker. 15. Mr. Uthaman, learned counsel appearing for the Central Government, submitted that the Chinese crackers were also seized in Ghaziabad in Uttar Pradesh, Chennai, Mumbai and Gautam Buddha Nagar and appropriate cases have been registered against the importers. 16. Heard the parties and perused the records. The Explosives Act enacted by Parliament and Explosives Rules, 2008 are regulating the manufacture, import, export, transport and sale of explosives. Chief Controller of Explosives grants Explosives License. Section 6 of the Act prohibits the manufacture, possession, import of dangerous explosives without licence by issuance of a notification by the Central Government. 17. As per Rule 6, no person shall manufacture, import, export, transport, possess, sell or use any explosives unless it has been declared as an authorized explosive by an order of the Chief Controller of Explosives. As per Rule 10(2), no person shall import or export explosives except in accordance with license and only through notified ....
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....l Chinese Fire Crackers were confiscated in Chennai in November 2012, in Mundra (Kutch) in March 2013 and ICD Dadri, Greater Noida, District Gautam Buddha Nagar, U.P., in April 2014 and 460 cartons in May 2013, in Uran Raigad District and in Loni, Ghaziabad and ICD Tughlakabad in 2013. Therefore, strict and swift action is to be taken with iron hand to curtail this menace throughout India by a single agency. In spite of the notifications right from 2010 to till date, the records would prove that there has been clandestine smuggling of prohibited Chinese crackers. It only proves the slackness in the verification at the entry level, viz., Ports or Airports or border checkposts. As the prohibited crackers are able to creep inside India unauthorizedly, there is every likelihood of even dangerous explosive materials to come inside endangering lives, properties and most importantly the security of the nation. Every officer in the entry points should be duty conscious, vigilant to prevent smuglling prohibited items in our Country. They should discharge their duties not only in according to law, but also with patriotism. 21. It is surprising to note that a serious issue has been de....
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....msp;Although, the crackers were seized on 15-5-2014 till 23-5-2014, no information was given to the Deputy Chief Controller of Explosives, Virudhunagar and the seized goods were not sent to them. Only when the matter was continuously heard by this Court from 21-5-2014 onwards and was called on 24-5-2014, the Deputy Chief Controller of Explosives was informed about the seizure only in the morning on 24-5-2014. Even thereafter, the police did not show interest to send the seized crackers to the Deputy Chief Controller of Explosives till 25-5-2014. The above lapses are evident by the conduct of the police. 25. Moreover the crime involves not only offences under the Explosive Substances Act, the Explosives Act and Rules but also the Customs Act. Similar prohibited goods were already seized from Mumbai, Ghaziabad, Mundra (Kutch) Gujarat and Chennai on various dates and the clandestine import of Chinese crackers has become an all India racket by organized groups and the State Police Authorities may not be in a position and have jurisdiction to conduct the investigation. Therefore, only a Central agency would be in a position to conduct the investigation properly throughout the na....
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....ed are opened and examined. To a query, the Assistant Commissioner, who was present before this Court, would submit that 500 containers are being received at Tuticorin port and an average of 20 to 25 containers are selected by Risk Management System (RMS) for scanning and the selection was on the basis of risk parameters, viz., description of commodity, country of origin and any defaulters. If 20 to 25 containers alone are randomly selected and checked, it will not be a fool proof system and that is the reason why the prohibited items like Chinese crackers are making silent entry into our Country threatening our fire work industries. 28. The Central authorities would contend that mobile gamma ray scanners are used for checking and the scanning is a non-intrusional method of inspection and an average of 20 to 25 containers are selected by Risk Management System (RMS) for scanning every day based on description of commodity, Country of Origin. If there is a specific information, containers are examined in the presence of Special Intelligence and Investigation Branch. The Respondents 16 and 17 explained about the above procedure in Paras 6 and 7 of their Counter which are usef....
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....eclared goods, then there would not be any problem. By false and mis-declaration, if arms, ammunitions and other dangerous weapons enter into our country, what will happen, to our great nation? It is a fact that many extremist organizations/outfits are active in almost every part of our country and many explosions are taking place, killing innocent lives causing very huge destructions like what happened in Budh Gaya temple in Gaya, Bihar, in the Central Railway Station in Chennai on 1st May 2014 etc., It is reported in the media that 145 kgms explosives was recovered from an abandoned car in Varanasi on 14-6-2014. In many places very dangerous explosives like RDX are said to be used for causing explosion. Therefore, it is need of the hour to take emergent steps to install proper mechanism/safeguards in all the Ports and Airports to scan most of the containers to rule out any contraband goods in the entry itself. Instead of taking appropriate safeguards to verify/check of the goods in the entry itself, there is no point in conducting investigation after allowing the prohibited contrabands items after facing dangerous consequences. Even an explosion can take away thousands of preciou....
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....130 Crores and the authorities cannot expect complaints from ordinary citizens after noticing commission of offences. Therefore, there should be a separate wing in every department to get information from various source including Internet, and other media and suo moto, take note of commission of offences and register the case. It is evident from the materials downloaded from the Internet, that prohibited items are being sold. This Court expects the CBI and other Central agencies shall look into the materials also and take action as per law. 33. The Official respondents stated that the import of fireworks falling under Tariff item No. 36.04 of the Customs Tariff is restricted. The Director General of Foreign Trade, Ministry of Commerce, Government of India, New Delhi, till date has not issued any licence for the import of such firecracker into India. It is the contention of the 15th respondent that about 500 containers of Chinese crackers entered India. Therefore, the respondents are directed forthwith conduct raids throughout India and seize under Rule 128 all the Chinese crackers wherever they are found and destroy them as per Rule 129 of the Explosive Rules. The Central G....
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....e works Industry is valued at Rs. 2,000 crores and it should not be allowed to be destroyed by banned fireworks. Illegal entry of prohibited Chinese Fireworks is nothing but an assault on our fireworks industry and our economy and security of the nation and health of our children. 37. As stated above, the facts of the case would reveal that there is a prohibition for import of Chinese crackers. (a) As evident from various notifications, so far the Government has not issued any license for import of Chinese crackers. (b) In spite of that, the prohibited Chinese crackers are making their entry illegally, as proved by the facts of the case. (c) Government should publicise that Chinese crackers are banned items and are illegal as they contain prohibited dangerous chemicals as per Central Government Notification No. G.S.R. No. 64(E), dated 27-1-1992 and Notification No. G.S.R. No. 682(E), dated 5-10-1999. (d) All the importers, stockists, distributors, retailers of Chinese Crackers have to be forthwith identified; raid their places, seize the crackers, destroy them as per the pr....
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....factured with cheap chemicals. (n) The Executive Magistrate and Police Officials shall carryout inspection as per Rule 128(4) of the Explosive Rules periodically. 38. At the same time, this Court takes judicial note of various fire accidents occurring in Sivakasi during manufacture of fire crackers resulting in death of many persons and damage of property continuously. It is reported for the past ten years about 300 persons died. Therefore, the concerned authorities especially respondents 8 to 10 should strictly oversee as to whether safety procedures to be adopted in the Industry are followed by the companies by periodical inspection to avoid any fire accident. In the manufacture, the workers have to deal with Chemicals and they are continuously exposed to the Chemicals which may cause many diseases including skin and respiratory diseases. Hence, the respondents 5, 8, 9 and 10 are directed to give appropriate directions to the 15th Respondents Association to follow the Rules strictly. Consequently, the 15th respondent is also directed to follow the Rules. This direction is issued to do complete justice taking into consideration of the condition of the ....