- (1.) These two Rules arise out of the same adjudication proceeding under the Customs Act of 1962. Petitioner in both the Rules is the same person. While the order challenged in C. R. 7271 (W)/69 is an interlocutory order in course of the adjudication passed by the Collector of Customs dated July 26, 1969 and the Appellate Order therefrom passed by the Central Board of Excise and Customs dated September 17, 1969, the order challenged in C. R. 8607(W) of 1969 is the final order of confiscation dated September 27, 1969 passed by the Collector of Customs in the same adjudication proceeding. In the facts and circumstances of the case, it is not in dispute by the respondents that if C. R. 7271(W) of 1969 succeeds and the interlocutory order passed therein is set aside, then in that event the final order of confiscation would fail irrespective of the question whether it should fail on other merits or not. To appreciate the dispute it will be necessary to refer to the facts in short which are set out as follows.
(2.) Acting on an information about smuggling of contraband gold Customs Officers of the Preventive and Intelligence Unit took out search orders from the appropriate authority and searched two contiguous premises being premises Nos. 81-B, Chittaranjan Avenue and 14 Feares Land, Calcutta on January 31, 1968. While flat No. 81-B Chittaranjan Avenue was in the nature of a residential flat the premises in 14, Feares Lane appears to be a store room. The room at 14, Feares Lane was found under double locks. The Preventive Officers found a cook present at flat No. 81-B, Chittaranjan Avenue and while they were proceeding with the search two persons Abdul Kader and I. A. M. Hamid appeared on the scene. Nothing in criminating was found on search at 81-B, Chittaranjan Avenue but a key bearing No. 2793967 was recovered from a steel cabinet. With the help of this key one of the locks at the store room at 14, Feares Lane bearing the identical number was opened. The other lock, however, could not be opened and as such the latch on the door was removed. On entry so secure the Preventive Officers searched the room and recovered two lakhs in Indian currency notes under circumstances which led to a reasonable belief that the said money represents the sale proceeds of smuggled gold. The currency note were, therefore, seized.
(3.) Consequent to such seizure on July 22, 1968 an adjudication proceeding was initiated on a show cause notice issued under section 124 of the Customs Act. It was claimed that the seized Indian Currency is believed to be the sale proceeds of goods imported unlawfully from foreign territory and as such liable to be confiscated under section 121 and further persons involved are liable to penalty under section 112 of the Customs Act. The present petitioner M. S. Naina was served with the said show cause notice inasmuch as he was found to be the tenant in respect of flat at 81-B, Chittaranjan Avenue from where one of the keys of the store room of 14, Feares Lane, was recovered.;