Today's case

By Vijay Kumar

Customs

Prosecution of Customs officer for drawback fraud – Supreme Court declines to quash proceedings

We couldn't resist the temptation – to beat our own record. This was a judgement of the Apex Court delivered yesterday and we bring it to you today – with our analysis.

A person is said to have done anything fraudulently if he does that with intent to defraud but not otherwise. The requisite guilty knowledge or mens rea under clauses (a) and (b) of Section 135(1) of the Customs Act can be established by circumstantial evidence. Here the petitioner is alleged to have floated fictitious firms with dishonest intention to obtain the duty draw back. In my view on the facts alleged, offence under section 135 of the Act is prima facie made out."

We are not unmindful of the proposition of law that a penal statute must receive strict construction.

But it is also a trite law that the Court while interpreting a statute must consider the purpose for which the Act has been enacted.