TaxTMI 
TaxTMI 
2026 (7) TMI 163
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....la. As per the Vienna Convention on Consular Relations, diplomatic cargo is immune to checking at airports. 3. It was found that the persons involved and more specifically Sarith PS had previously worked as a Public Relation Officer with the UAE Consulate and was involved in the smuggling operation along with Swapna Prabha Suresh, Sandeep Nair and others. During the investigation of the scheduled offence, Sarith PS was arrested by the customs authorities and thereupon was remanded by the Court. It was followed by inclusion of many others. 4. So far as the appellant is concerned, allegation against him is about his involvement in criminal activities and commission of scheduled offence involving 33.5 kg of gold valued at Rs. 11,38,46,400/-. It is apart from the allegation that the appellant used to arrange investors for smuggling several kilograms of gold on earlier occasions and was also involved in about 15 kgs of gold valued at Rs. 7,35,00,000/- included in the 30.354 kg of gold valued at Rs. 14,82,00,010/-. 5. An ECIR pursuant to the predicate offence was recorded by the respondent and caused investigation finding involvement of the appellant. The respondent caused PAO f....
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....while recording finding on each issue raised by the appellant. It is to avoid repetition of one and the same facts and for sake of brevity. Findings of the Tribunal: 12. In the opening paras of this order, I have made reference of the registration of the case against the accused involved in smuggling of gold. It was subsequent to registration of the RO by the Customs Commissionerate (Preventive) Cochin upon finding smuggling of gold using the diplomatic baggage which is immune from inspection as per the Vienna Convention. It was, however, found that the gold was disguised as diplomatic baggage for the UAE Consulate at Trivandrum. Accordingly, with the registration of the case, accused were identified which included the appellant. He is said to have been involved in smuggling of 33.5 kg of gold involving a sum of Rs. 11,38,46,400/- at one place and Rs. 7,35,00,000/-otherwise. Ld. Counsel has shown innocence of the appellant for commission of crime. However, fair to admit that the FIR or ECIR has not been set-aside by any of the Court or even a discharge or acquittal order in favour of the appellant. The fact, thus, remains that the appellant is facing the allegation for commis....
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....n by the Supreme Court, which has superseded the legal principles established in Seema Garg's case (supra). 3.4. It is evident that the original (unamended) definition of phrase 'proceeds of crime' was structured into two distinct parts. The first part relates to the property derived or obtained directly or indirectly by any person as a result of criminal activity relating to a scheduled offence, whereas, the second part relates to the value of any such property where the proceeds of crime are not traceable. This clearly means that if the property derived or obtained, directly or indirectly, from the proceeds of a crime of scheduled offence is not traceable, then any property of equivalent value falls within the scope of the expression 'proceeds of crime'. In 2015, the amendment restructured the definition into three parts to cover the property taken or held outside the country. The concept of the property of equivalent value was introduced with respect to the aforementioned properties. The amendment enabled the authorities to go after any other property of a person of equivalent value. In 2019, the scope of the phrase 'proceeds of crime' was fu....
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....at the Supreme Court in Vijay Madanlal Chaudhary's case (supra) was examining the scope of the '2002 Act' including definition of phrase 'proceeds of crime'. The submission put forth by the learned counsel that the phrase 'or the value of any such property' is superfluous was rejected by the Court and it was held that the definition of 'proceeds of crime' is wide enough to not only include to the property derived or obtained as a result of criminal activity related to a schedule offence but also any other property of equivalent value. 3.7. While interpreting a statutory provision, it is the bounden duty of the Courts to interpret it in manner so that each word used by the statute conveys a meaning it was assigned by the Legislature. The words used in statute are of utmost significance. The Court cannot widen or restrict the provisions on its own whims and fancies. When a statute's language is clear and unambiguous, the general rule of interpretation of statute is to read the provision as a whole and the Court must adhere strictly to the ordinary, plain meaning of the words used. The words in a statute are used precisely, not loosely,....