Banerjee, J. - (1.) The petitioner carries on business under the trade name of Hard Sales Agency, at No. 34, Armenian Street, Calcutta. On August 3, 1962, the office and godown of the petitioner was searched by the police and certain tins of dyes, all manufactured in foreign countries, and certain other articles were seized. On the same date the petitioner was arrested by the police, on a charge of retaining stolen properties, and was prosecuted before the Additional Presidency Magistrate, Calcutta. After a long and protracted enquiry by the police, the petitioner was discharged on September 11, 1962. While the police investigation was going on, a Deputy Superintendent of Land Customs applied before the Additional Chief Presidency Magistrate, under Section 180 of the Sea Customs Act, praying that the seized goods be delivered to the Customs Department. The Additional Chief Presidency Magistrate granted the prayer and the Customs Department took possession of the seized goods from the police. The petitioner applied before the Magistrate to recover possession of the goods after his discharge out the Additional Chief Presidency Magistrate refused the prayer.
(2.) On November 17, 1962, the respondent Superintendent of Land Customs issued a notice to the petitioner to the following effect: "Whereas on the evidence indicated hereinbelow there is reason to believe that the goods mentioned in the attached schedule (which were found in the premises of M/s. Hard Sales Agency, 34, Armenian Street, Calcutta) have been imported (by you) and other associate by land from foreign territory into India on or about 3-8-62 without- (i) a valid permit under Section 4 of the Land Customs Act, 1924; (ii) a valid import licence as required under Imports/Exports Control Order 1955 dated 7-12-55 issued by the Government of India, Ministry of Commerce and Industry, under Section 3(i) of the Imports and Exports (Control) Act, 1947; and accordingly the said goods are liable to be confiscated and you are liable to a penalty under- (i) Section 5(3)/section 7(1) of the Land Customs Act, 1924; (ii) Section 167(8) read with Section 19 of the Sea Customs Act, 1878 as made applicable by Section 3(2) of the Imports and Exports (Control) Act, 1947; Brief outline of the evidence; (Evidence is enclosed in separate sheet) You are, therefore, called upon to show cause before the Assistant Collector of Land Customs, Calcutta at Multistoried Buildings (2nd Floor) 15/1, Strand Road, Calcutta 1 within ten days from the date hereof why penalty should not be imposed upon you and why the said goods should not be confiscated under the aforesaid provisions of law."
(3.) The petitioner showed cause to the notice, in writing, inter alia, denying the allegation and stating affirmatively that he was a bona fide purchaser of the seized goods (excepting one item, of which he denied ownership).;