Khawaja MUHAMMAD NAEEM vs THE STATE
This matter concerns a petition for post-arrest bail filed by the petitioner, Khawaja Muhammad Naeem, who was accused in F.I.R. No. 40/2007 registered under the Customs Act, 1969, for the alleged removal of goods from a bonded warehouse without the payment of requisite duty and taxes. The core legal question was whether the petitioner, having expressed willingness to pay a portion of the evaded duty and taxes, was entitled to the concession of post-arrest bail. The Court observed that the petitioner had deposited 25% of the assessed liability into the Government treasury. Consequently, the Court allowed the petition and granted post-arrest bail, subject to the petitioner furnishing bail bonds and joining the adjudication proceedings. The key principle laid down is that while bail may be granted in customs-related offences upon partial payment of liability, such relief is conditional upon the accused's continued cooperation in adjudication proceedings and the subsequent liquidation of the remaining legal liability, failing which the prosecution may seek cancellation of the bail.
- Can post-arrest bail be granted in a customs case upon the partial payment of evaded duty and taxes?
- Is a petitioner granted bail in a customs case required to join adjudication proceedings?
- Can the concession of bail be cancelled if the accused fails to liquidate their legal liability regarding customs duties?
- 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
' M. BILAL KHAN, J.---Khawaja Muhammad Naeem son of Ghulam Mohiuddin, the petitioner by filing this petition, seeks post-arrest bail in case F.I.R. 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 furnished bail bond in the sums of Rs, 200,000 with one surety in the like amount to the satisfaction of the learned trial Court.