SHAH, J - (1.) THE Judgment of the court was delivered by
(2.) ON 31/03/1959, the Ministry of Commerce and Industry, government of India) granted to the respondents a licence permitting them to import from West Germany certain machinery described therein of the maximum C. 1. F. value of Rs, 45,000.00. Condition No. 1 of the licence provided that: "The X x X application is accepted and import licence is hereby granted having quantity and value as the limiting factors and is not valid for clearance) if the actual value of any item exceeds the C. I. F. value indicated in the licence by more than 5%. ' ' The respondent submitted a bill of entry) dated 1/07/1960, disclosing the C. I. F. value of the consignment as Rs. 45,179-92 inclusive of landing 137 charges, and cleared the consignment after paying duty assessed by the Customs authorities on the real value of the goods as disclosed in the bill of entry, On 20/06/1961, the Customs authorities issued a notice requiring the respondents to show cause why penal action should not be taken against them under Section 167(8) of the. Sea (customs Act, 1878. as being persons concerned in the unauthorised importation of the goods. This notice was amended by notice, dated 21/09/1961, whereby the respondents were charged with having committed offences under Section 167(8) read with Section 3(2) of the Imports and Exports (Control) Act, 1947, for illegally importing the machinery. The respondents cla,imed that no broach of the conditions of the licence was committed. The Additional Collector of Customs, Calcutta by order, dated 17/03/1962, directed confiscation of the machinery under Section 167(8) of the Sea Customs Act read with Section 3(2) of the Imports and Exports (Conlrol) Act, 1947, and permitted the respondents to pay a fine of R.s. 20,000.00 in lieu of confiscation. A personal penalty of Rs. 25,000.00 was also imposed on the respondents. The respondents then moved a petition before the High court of Calcutta under Article 226 of the Constitution praying for a writ quashing the adjudication order dated 17/03/1962. A Single Judge of the Calcutta High court dismissed the petition, but in appeal under the Letters Paten the High court reversed the decision and issued a writ of certiorari quashing the order, dated 17/03/1962. The Additional Collector of Customs, Calcutta, has appealed to this court with certificate granted by the High court.
(3.) THE only question which falls to be determined is whether for breach of a condition of the licence penalty my be imposed under Section 5 of the Imports and Exports (Control) Act., 1947, read with the Sea Customs Act, 1878. The relevant statutory provisions may first be noticed. Under Section 167 of the Sea Customs Act, 1878, the offences mentioned in the first column of the Schedule are punishable to the extent mentioned in the third column of the same with reference to such offences respectively : JUDGEMENT_136_3_1970Html1.htm Ch. IV of the Sea Customs Act, 1878, contains three, S. : S. 11.1.19 and 19-A. By Section 18 an absolute prohibition is imposed in respect of importation of goods by land or by sea specified therein. Section 19 provides 138 that the central government may from time to time, by notification in the Official Gazette prohibit or restrict the brining or taking by sea or by land goods of any specified description into or out of India across any customs frontier as defined by the central government.;