TaxTMI 
TaxTMI 
2024 (1) TMI 940
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.... specific intelligence input, conducted search and seized 5.8 kgs. of smuggled gold at Air Cargo Complex, Mumbai, on 6th May, 2022. During the course of investigation, DRI conducted a search at a premise located at 403A, 4th Floor, Golden Plaza Building, Dhanji Street, Kalbadevi, Mumbai. During the search operations thereat smuggled gold in various forms weighing 37.129 kgs. with an approximate value of Rs. 21.65 Crores was recovered under Section 111 of the Customs Act. Cash amount of Rs. 23,50,256/- was also recovered and seized under Section 121 of the Customs Act. 3. Statements of the members of the alleged syndicate were recorded under Section 108 of the Customs Act. One Prashant Mainkar was arrested on 24th January, 2023. It further ....
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...., since the investigation is complete for all intent and purpose, at this stage, custodial interrogation of the applicant is not warranted. 6. An affidavit-in-reply is filed on behalf of DRI in opposition to the prayer of pre-arrest bail. It is contended, inter alia, that a strong case is made out against the applicant which warrants investigation for which custodial interrogation of the applicant is indispensable. The applicant, according to DRI, did not cooperate with the investigation and suppressed material information. Having regard to the quantity of the smuggled gold and the gravity of the offence, arrest of the accused is necessary for complete and effective investigation. 7. I have heard Mr. Pathak, the learned Counsel for the ap....
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.... offence under Sections 132, 133, 135, 135A or 136 of the Customs Act. Laying emphasis on the use of the expression "reason to believe" Mr. Pathak submitted that in the case at hand there is no material to demonstrate that the said test is satisfied. It is not the mere ipse dexit of the concerned officer. There has to be credible material which would justify such belief, submitted Mr. Pathak. 10. A very strong reliance was placed by Mr. Pathak on an order passed by this Court in the case of Narendra Amrutlal Patel and anr. vs. Assistant Commissioner of State Tax and anr. in Anticipatory Bail Application No. 2099 of 2022, wherein in the context of the provisions of Section 132 of the Central Goods and Services Tax Act, 2017, it was enunciat....
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.... the smuggled gold was meant for Ganesh Jewellers, yet, it was, in fact, delivered at the applicant's firm. The mobile number of the applicant finds mention on the receipts under which the smuggled gold was allegedly transferred. To add to this, according to Mr. Ketkar, there is material to show that the applicant had abused the liberty by making an effort to dissuade the persons from disclosing his identity and involvement in the smuggling. In such circumstances, an order of pre-arrest bail would cause serious prejudice to the public interest. According to Mr. Ketkar, the huge quantity of the smuggled gold allegedly delivered to the applicant and the resultant gravity of the offence, which has the propensity to cause huge loss to public re....
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....pnath Jewellers on the instructions of one Shrikant of Ganesh Jewellers. The mobile number of the applicant was mentioned on the parcels which were meant for Ganesh Jewellers. Mr. Sankalchand claimed to have known the applicant and in all delivered 12 parcels to the applicant containing the melted gold during the period 7th December, 2022 to 18th January, 2023. 16. Mr. Dharmaraj Bhosale, who came to be arrested, also seems to have stated that 30 to 32 kgs. smuggled gold in melted form was sent to Ganesh Jewellers, Ahmedabad, and after Prashant Mainkar was released on bail, the applicant had been to meet Prashant to enquire as to whose names Prashant had divulged before the DRI. In a further statement Dharmaraj Bhosale specifically named th....