Facts of the Case

The petitioner was arrested on 12.08.2023 while attempting to pass through customs at the airport without declaring gold in his possession. Customs officials recovered 2,345 grams of gold valued at approximately Rs.1,21,34,000/- from him, and he was booked in Crime No. HQPOR/165/2023 registered by the Superintendent of Customs (Preventive), Customs Commissionerate, on the file at the address 'GST Bhavan, Basheerbagh, Hyderabad' — a reference only to the building where the Customs office is located, not to any GST offence.

The alleged offence falls under Section 135 of the Customs Act, 1962, which carries a maximum punishment of seven years' imprisonment. The petitioner sought regular bail under Sections 437 and 439 of the Code of Criminal Procedure, 1973.

Noting that a substantial part of the investigation was complete and that the petitioner had been caught red-handed at the airport (reducing flight risk from an evidentiary standpoint), the Court granted regular bail subject to conditions including personal bonds, sureties, and a mandatory weekly reporting requirement before the local police station.

Issues Involved

  1. Whether the petitioner, accused of smuggling gold and facing prosecution under Section 135 of the Customs Act, was entitled to regular bail pending trial.

Petitioner's Arguments

  • Most of the investigation was already complete, reducing the need for continued custody.
  • The petitioner was prepared to comply with bail conditions, including furnishing personal bonds and sureties.

Respondent's Arguments

  • The State/prosecution's specific opposing submissions are not detailed in the order beyond the fact of the seizure and the offence alleged.

Court Order / Findings

  • The Court noted the maximum punishment for the offence under Section 135 of the Customs Act is seven years and that the investigation was substantially complete.
  • Since the petitioner was apprehended red-handed at the airport, the Court found it a fit case for grant of regular bail.
  • Bail was granted on furnishing personal bonds of Rs.50,000/- with two sureties of like amount, subject to weekly reporting before the Station House Officer for eight weeks (or until charge-sheet filing, whichever is earlier) and compliance with the other conditions under Section 437(3) Cr.P.C.

Important Clarification

The 'GST Bhavan' reference in this order is only an address for the Customs Commissionerate's office — it does not signify any GST-law issue. This is a straightforward bail order in a Customs Act gold-smuggling prosecution and carries no findings on any GST question.

Sections Involved

  • Customs Act, 1962 — Section 135 (offence of smuggling/evading customs duty)
  • Code of Criminal Procedure, 1973 — Sections 437, 439 and 437(3) (bail provisions)

Decision – In Favour of

Decided in favour of the petitioner/accused to the limited extent of grant of regular bail, subject to conditions — the Court did not adjudicate guilt or innocence, which remains for trial.

Case Details

  • Court: High Court for the State of Telangana at Hyderabad
  • Case No.: Criminal Petition No.8922 of 2023
  • Coram: Hon'ble Sri Justice K. Surender
  • Date of Order: 21.09.2023

Link to Download the Order

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