TaxTMI 
TaxTMI 
2025 (8) TMI 112
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....UDGMENT PER The applicants apprehend arrest and coercive action in connection with allegations involving both compoundable and non-baliable offences punishable under Sections 132 and 135 of the Customs Act, 1962. These apprehensions arise in the course of an ongoing investigation being conducted under File No. DRI/MZU/F/INT-32/Enq 17/2025/RA No. 485 of 2025, by and/or at the instance of the respondent/ Directorate of Revenue Intelligence (DRI). 2. The investigation pertains to alleged acts of misdeclaration in the importation of goods, primarily walnuts, which are classified as freely importable items. These imports were mainly routed through the Nhava-Sheva Port. The DRI accuses the applicants of deliberately undervaluing the importe....
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....e undervaluation in the import of 'Inshell Walnuts'. It is alleged that the modus operandi involved the submission of manipulated and fabricated invoices issued by Dubai-based entities to Indian Customs authorities, to suppress the true transaction value and thereby evade customs duties. It is further alleged that Sneh Deepakbhai Kakadiya, in his capacity as an authorised representative of the Dubai-based entity, had personally signed the aforementioned manipulated invoices. Additionally, actual invoices issued by a Chile-based supplier were recovered from Sneh Deepakbhai Kakadiya's email account, clearly indicating a significant discrepancy and deliberate under-invoicing. The estimated customs duty evaded in this manner is said to exceed R....
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..... The customs declarations in question were primarily made at Nhava-Sheva, located in District Raigad, with some declarations made at Mundra Port in Gujarat. Under such circumstances, the applicants cannot be expected to jeoparadise their liberty by engaging in protracted arguments over territorial jurisdiction, specifically, whether the matter falls under the jurisdiction of the Sessions Court at Mumbai (where remand proceedings of co-accused are being conducted) or the Sessions Court at Panvel District-Raigad, where the alleged offence was committed. Given these peculiar and complex jurisdictional facts, the applicants have exercised their right to approach this Court, which has concurrent territorial jurisdiction over both District Raiga....
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....t, dated 1 July 2025, has also been filed before the learned ACMM, Esplanade, Mumbai, in Remand Application No. 485 of 2025. 12. Following the filing of the Compounding Application dated 1 July 2025, the Compounding Authority, by way of an ex-parte order dated 3 July 2025, rejected the application as premature and inadmissible. The grounds cited were that the application had been filed during the pendency of the investigation and prior to the determination and payment of duty, penalty, and interest. However, the said order dated 3 July 2025 was subsequently set aside in a statutory appeal by the CESTAT. The compounding application was restored, with the Tribunal placing reliance inter alia on the decision in Imran Latif Shirgawkar Vs. Di....
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....n pertains to the submission of false declarations, and it is undisputed that the case rests predominantly on documentary evidence. The allegedly forged declarations and their supporting documents are already in the possession of the customs department. Furthermore, access to relevant emails has been provided by the son of applicant No. 1, who was arrested and subsequently released on bail. There is no record of any prior convictions against the applicants. 15. The applicants have demonstrated their willingness to pursue the statutory remedy of compounding the alleged offence. In this context, they may be directed to cooperate with the investigation, subject to appropriate conditions to allay the concerns of the investigating authority. ....
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.... 17. The object of the compounding mechanism is to ensure enforcement of the Act while providing a route for voluntary compliance and avoidance of protracted litigation or incarceration. In the past, the Courts extended interim protection to the applicants therein during the pending investigation under the Customs Act and the Central Excise Act. Illustratively: Manoj Arun Gore Vs. Union of India & Ors., Cri. WP No. 1649 of 2005 dated 30 June 2005; Sadruddin Basar Khan Vs Union of India & Ors, Cri WP No. 1648 of 2005 dated 30 June 2005; Mahesh Mehta Vs Union of India & Ors., Cri WP No. 2695 of 2005 dated 27 October 2005. Similarly, in Sita Ram Aggarwal Vs Customs, 2005 SCC OnLine Del 61, the Delhi High Court granted regular bail primarily ....