SCHIZOPHRENIC APPROACH
CENTRAL GOVERNMENT ADOPTING SCHIZOPHRENIC APPROACH
The HIGH COURT OF DELHI, while deciding W.P. (C ) No. 10982 of 2006 on 20.03.2009 in re : VIJAY GULATI vs U.O.I. observed as follows : -
QUOTE : Now, the jurisdiction of the Customs authorities vis-à-vis the two sets of foreign exchange – one seized near the Airport and the other seized subsequently was on the basis that they formed part of the same transactions or arose out of the statement recorded in the first seizure. Such being the case and the notices, having been issued as a part of the same investigation process, the Central Government could not have adopted a schizophrenic approach ; on the one hand holding that the confiscation was unauthorized, and on other, upholding the confiscation in the absence of such order in the petitioner’s case. The order no where discloses that insofar as the petitioner is concerned, there was any such determination by the authorities under FEMA or the RBI, as the case may be. Therefore, Central Government has, in the impugned order disclosed an inconsistent and wholly illogical approach in law which can hardly commended by this Court. Having held that Customs authorities lacked jurisdiction to deal with the matter in the absence of a proper determination under the relevant law, the Central Government committed a fatal error of law in not applying the same reasoning to the latter part as far as it concerned the petitioner. The latter part of the order is at odds with the earlier reasoning, and without any rationale. UNQUOTE.
[for full text of the judgement, please visit http://www.taxesinindia.com and click on the citation taxind_2009_hc_del_wpc_10982]
HIGH COURT JUDGEMENT
VENKATRAMAN RAGGHUPATHY, Web admin.
