Case Note & Summary
The present writ petition was filed by Yamal Manojbhai, a Non-Resident Indian (NRI), under Article 32 of the Constitution of India, raising an issue of personal liberty under Article 21 concerning the right of an accused under the Customs Act, 1962 to settle the dispute under Chapter XIVA of the Act. The petitioner was arrested on 04.10.2022 at the Delhi International Airport on suspicion of smuggling high-value goods, including seven wrist watches, through the green channel without paying duty. He was arrested on 05.10.2022 for alleged offences under Sections 132 and 135 of the Customs Act. The petitioner sought directions for permission to receive home-cooked food and later filed an I.A. seeking initiation of settlement proceedings under Section 127 of the Customs Act. An ex-parte order dated 20.02.2023 was passed directing the Commissioner of Customs to issue a show-cause notice to initiate proceedings. The respondent filed an application for recall of that order, which was granted after hearing both parties. During arguments on merits, a conflict between two judgments of the Bombay High Court and the Delhi High Court regarding the jurisdiction of the Settlement Commission was brought to the Court's notice. The Court noted that the settlement remedy under Section 127H of the Customs Act grants immunity from prosecution and penalty, and ambiguity in this right could harm accused persons' fundamental rights. In view of the divergence of opinion, the Court directed the Registry to place the matter before the Chief Justice of India for appropriate orders.
Headnote
A) Customs Law - Settlement Commission - Jurisdiction - Chapter XIVA, Sections 127, 127H Customs Act, 1962 - The issue pertains to the right of an accused under the Customs Act to settle the dispute by approaching the Settlement Commission. The Court noted a conflict between the Bombay High Court and Delhi High Court judgments on the jurisdiction of the Settlement Commission to hear matters where the accused has been arrested. The Court directed the Registry to place the matter before the Chief Justice of India for appropriate orders in view of the divergence of opinion. (Paras 1-10) B) Constitutional Law - Personal Liberty - Article 21, Article 32 Constitution of India - The writ petition raised an issue of huge importance of personal liberty under Article 21 regarding the right of an accused under the Customs Act to settle the dispute. The Court observed that the remedy of settlement under the Customs Act has the power to grant immunity from prosecution and penalty under Section 127H, and ambiguity in this right may cause damage to fundamental rights. (Paras 1, 9)
Issue of Consideration
Whether an accused under the Customs Act, 1962 has the right to approach the Settlement Commission under Chapter XIVA of the Customs Act, and whether there is a conflict between the judgments of the Bombay High Court and the Delhi High Court on this issue.
Final Decision
In view of divergence of opinion between the Bombay High Court and the Delhi High Court on the jurisdiction of the Settlement Commission under the Customs Act, the Registry is directed to place this matter before Hon’ble the Chief Justice of India for appropriate orders.
Law Points
- Settlement Commission jurisdiction
- personal liberty
- right to settle under Customs Act
- conflict between High Court judgments
- reference to larger bench
