TMI Blog2007 (10) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... er that sanction and authorization for prosecution given by the respondent No. 2 and consequent proceedings of taking cognizance by the court of AC MM were without jurisdiction. The writ petition is hereby dismissed. - 2230-2231 of 2006 - - - Dated:- 3-10-2007 - Shiv Narayan Dhingra, J. [Judgment]. - This writ petition under Article 226 of the Constitution of India read with Section 482 of Cr. P.C has been preferred by the petitioners for quashing the sanction and authorization for prosecution given by respondent No. 2 and the consequent proceedings and order of taking cognizance by the Court of Additional Chief Metropolitan Magistrate dated 27th April, 2006 in a complaint under Sections 135(1)(a) and 135(b) of the Customs Act fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the premises in Noida. On search CDs worth Rs. 2,44,800/-, some documents and a large unquantified stock of inlay cards/packing material for the CDs were recovered. Considering the entire material collected by the investigating agency and the documents, respondent No.2 considered it a fit case for grant of sanction for prosecution of the petitioners in exercise of powers conferred by virtue of Section 137(1) of Customs Act for offences punishable under Section 135(1)(a) of the Customs Act. A complaint was filed giving details of the entire exercise of seizing of materials and clandestine removal. 3. After considering the material before it, learned Metropolitan Magistrate took cognizance of the offence under Section 135(1)(a) and 135(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort Oriented Units (EOU) in NEPZ and diverted for home consumption. EOUs are permitted by the Government in Special Economic Zones with the motive of promoting exports. These EOUs are given exemption from custom duty on imports and exemptions from excise duty since the goods manufactured in these Units are manufactured only for the purposes of export and not for domestic consumption. If a manufacturing unit for the same articles is established outside the Special Economic Zones for domestic consumption, the manufacturer will have to pay the custom duty on imports used in the manufacturing and excise duty as well. 5. Special Economic Zones (SEZ) are free trade zones. These zones are given exemptions from custom and excise duties and the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods and this cannot be done without permission and without payment of duties. If, the goods are removed without permission, they are liable to be confiscated under Section 111(O) of the Customs Act. 6. I consider that the contention of the petitioner that only Excise Act is applicable is not a valid contention. The goods which are manufactured in free trade zones are not only exempted from Excise Act but all raw-material, which is imported for the purpose of manufacture is also exempted from custom duty and the Export Processing Zones are treated as custom warehouse where from the goods cannot be removed for domestic market without permission and without payment of duties. I am, therefore, of the opinion that the Custom Act would be app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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