- (1.) TWO controversial issues involving determination of true implication of the provisions of section 110, 124 and 129 of the Customs Act, 1962 (Act 52 of 1962) (hereinafter referred to as the said Act) arise for consideration in this rule obtained on a writ petition. The first issue is as to whether the proviso to section 110 (2) is a limitation to a proceeding for confiscation or imposition of penalty under section 124 of the said Act. The second issue is as to whether the proviso to section 129 requires a judicial or a quasi judicial adjudication of the interim relief prayed for by an appellant and whether application of the principles of natural justice is called for in such adjudication. In deciding these two issues I propose to set out the facts briefly which are as follows: on August 18, 1967 one M/s. Parekh's Dresses of No. 66, Hanuman lane, Bombay sent a consignment to m/s. Amin Stores of No. 10 Bagri Market, Calcutta, through the petitioner which is a public limited company carrying on the business of road transport. The consignment note of that consignment was No. 6872. The consignment was purported to contain readymade garments. Both the consignor and the consignee were ultimately found to be non-existent fictitious firms and the consignment was found to contain 347 pieces of foreign watches. In the adjudication proceeding that subsequently followed none turned up to claim the watches.
(2.) ON September 2, 1967 the Customs authorities acting on an information searched the business premises of the petitioner at Calcutta and recovered the consignment under suspicious circumstances in spite of a determined attempt on the part of the employees of the petitioner company to secret the actual consignment and mislead the authorities conducting the search by interpolating the same consignment number to another package. When recovered under such circumstances the customs authorities seized the goods on a reasonable ground for believing that the goods were smuggled goods.
(3.) ON April 26, 1968 the Collector of central Excise and Customs served on the petitioner a show cause notice calling upon them to show cause why penalty should not be imposed upon them under sections 112 of the said act and why the 347 watches of foreign origin along with the other package should not be confiscated under sections 111 (d) and 119 of the said Act.;