Fazal Ali, J. - (1.) This appeal by special leave is directed against the judgment of the Madhya Pradesh High Court, D/- 19-11-1976* by which the High Court quashed the notice dated 27th July, 1972 issued by the Assistant Collector of Customs and also quashed fresh adjudication proceedings started by him under the provisions of the Customs Act (hereinafter referred to as the Act).
(2.) The appeal lies within a very narrow compass and turns upon the interpretation of the order passed by the appellate authority under Section 128 of the Act. On 27th February, 1969 the respondent Pratap Rai was detrained at Jabalpur by the Customs authorities while he was travelling by the Bombay Janta Express. On being searched as many as 23 wrist watches on which no custom duty was paid were recovered from his person. There adjudication proceeding under Section 122 of the Act were commenced by the Assistant Collector of Customs which culminated in the order of the Assistant collector dated 30th June, 1969 by which the watches were seized and ordered to be confiscated. A penalty of Rs. 250/- was levied on the respondent under Section 112 of the Act. The respondent then carried an appeal to the Appellate Collector under Section 128 of the Act against the order of the Assistant collector. The Appellate Collector by his order dated 22nd February, 1972 vacated the order of the Assistant Collector mainly on the ground that the Assistant Collector had not complied with the rules of natural justice. The fate of this case depends on the interpretation of the order passed by the Appellate Collector.
(3.) In order to appreciate the point in issue it may be necessary to extract the relevant portion of the order of the Appellate Collector which runs thus:- "The adjudication, therefore, suffers for lack of principle of natural justice, inasmuch as adequate opportunities were not given to the appellant to defend his case. I, therefore without prejudice, vacate the order of the adjudication passed by the Assistant Collector, Central Excise, Jabalpur." (Emphasis supplied),;