Khawaja MUHAMMAD NAEEM vs STATE
The petitioner filed a criminal miscellaneous petition before the Lahore High Court seeking post-arrest bail in case FIR No. 40 of 2007 registered under the Customs Act, 1969, at Police Station Collectorate of Customs, Lahore, concerning the alleged removal or replacement of goods from a bonded warehouse resulting in a duty and tax evasion of Rs. 6,17,775/-. During the proceedings, the petitioner expressed a willingness to deposit 25% of the disputed amount and subsequently submitted a challan showing the deposit of Rs. 1,55,000/- in the government treasury. The core legal question involved the extension of post-arrest bail to an accused facing tax evasion charges under the Customs Act upon offering partial payment of the evaded liability. The Court allowed the petition, admitting the petitioner to post-arrest bail subject to furnishing surety bonds and directing him to join adjudication proceedings and clear the remaining liability, with liberty granted to the department to seek bail cancellation upon default.
- Can an accused facing charges under the Customs Act 1969 be granted post-arrest bail upon depositing a portion of the evaded duty and taxes?
- What are the consequences if a released accused fails to liquidate their legal tax liability after being granted bail?
- Section 156(1), Customs Act 1969
- Section 156(9), Customs Act 1969
- Section 156(61), Customs Act 1969
- Section 156(62), Customs Act 1969
- Section 156(90), Customs Act 1969
- Section 178, Customs Act 1969
ORDER
Khawaja Muhammad Naeem son of Ghulam Mohiuddin, the petitioner, by filing this petition, seeks post-arrest bail in case FIR No, 40/2007 dated 19.5.2007, registered with Police Station Collectorate of Customs, Lahore, for offences under Sections 156(1), (9), (61), (62), (90) and 178 of the Customs"Act, 1969.
2. Briefly stated the allegation against the petitioner was that certain goods were removed/replaced from the bonded warehouse without payment of duty and taxes. According to the department the duty and taxes evaded had been worked out to be Rs, 6,17,775/-.
3. During the course of hearing of this petition on 1.11.2007 the petitioner had expressed his willingness to deposit 25% of the amount of duty and taxes, which according to him could be adjusted against his final liability. His learned counsel has today produced challan form showing that the amount of Rs, 1,55,000/- has since been deposited in the government treasury on 15.11.2007. The original challan form has been handed over to the learned Legal Advisor to the Customs Department whereas photostat has been placed on the file of this Court.
4. After , release from custody the petitioner shall join adjudication proceedings and subject to his remedies provided to him by law he shall be duty bound to deposit remaining amount of duty and taxes. If he fails to liquidate his legal liability, the department concerned will be at liberty to move this Court for cancellation of the concession of bail extended to him.
5. In this backdrop this petition is allowed and the petitioner is admitted to post-arrest bail provided he furnishes bail bond in the sum of Rs, 200,000/- with one surety in the like amount to the satisfaction of the learned trial Court.