B.N.Banerjee, J. - (1.) The petitioner carries on business as a dealer in watches, clocks, time-pieces, etc., under the trade name, "Wallton Watch Company", at No. 12 Chowringhee Road, Calcutta. On March 19, 1963, there was a search of the business premises of the petitioner conducted by the Rummaging Staff of the Customs Department. In course of the search 218 pieces of foreign made watches were found in the premises, but, on scrutiny of whatever documents the petitioner could produce at that time, 87 watches were released and 131 watches were included in a seizure list and were seized. Towards the end of the search the petitioner made the following statement, which was recorded by an officer of the Customs Department: "I, Sri Charan Das Malhotra son of late Harbhas Rai Malhotra do hereby state that I have produced all the watches to you in my possession. I do not have any watches anywhere else for production to you. I have produced bills against some of the watches for your inspection. I am, however, very unwell and I am not in a position to produce further vouchers or receipts against watches shown in the inventory I shall, however, produce the same for your inspection as early as possible. I do state that I purchased twenty four watches from the Custom House sales in the year 1957 or 1958. Out of this quantity I have sold all except two watches which I have produced to you and which I surrender herewith to you. I do hereby state that I make this statement voluntarily." Thereafter, between March 28, 1963 and May 6, 1963, the petitioner wrote several letters either to the respondent Assistant Collector or to the Additional Collector of Customs, either offering to produce further documents or asking for expeditious conclusion of the investigation and release of the said watches. Out of the said letters, I need quote below the letter dated May 6, 1963: "In connexion with the above I have to state that most of the watches are very old stock, some of which were previously owned by my concern named Welcan Watch Co., 170 Harrison Road, Calcutta, which was closed in the year 1955 and its stock in trade was then transferred to this concern. Two watches namely Drive Geneva and Record were seized by the Rummaging Staff of your department during their raid of my said shop, Welcan Watch Co. on 16-2-55 and were subsequently released as per your File No. S 12 (IV/T) 26/55P. Purchase vouchers of a watch was destroyed by white ants and the same was shown to the I. O. concerned. Vouchers for other watches are being submitted to your office for perusal and verification. You are requested to please expedite investigation and order early release." To the above letter, a Rummaging Inspector of the Customs Department sent The following reply, on June 21, 1963: "Please refer to your letter dated 6th May, 1963 forwarding vouchers, bills, invoice, etc. relating to the seized watches. These vouchers, however, do not cover all the watches seized from you and your representative Shri Sundarlal Lala who came to deliver the abovementioned vouchers and assured that the remaining vouchers would be submitted as soon as possible but none of them has since been forwarded. You are accordingly requested to send the wanting vouchers immediately and at least within a week hereof. You are also requested to produce your Stock Book within the same period for verification of your Stock of watches." The petitioner sent the following reply to the above letter, on July 5, 1963: "With reference to the above I have to state that I have already submitted to you a letter from Messrs. Benson Watch Co., 31, Dharamtolla Street, Calcutta regarding the purchase of some watches from them. One watch with the brand name EMES was purchased by me long ago from Messrs. M. S. Watch Co., 138, Radha Bazar Street, Calcutta. Unfortunately I have either lost the purchase voucher or it has perhaps been eaten by moth which destroyed some of my old records. I have, however, requested the said party to look up the record at their end and supply me a copy, if possible. They are doing the needful and may comply soon. You are requested to kindly summon them and get the watch inspected by them and I am sure that they will at once certify that the watch was sold by them long ago. As regards stock book I regret to state that my business being on a very small scale I did not maintain a description-wise stock book. " On consideration of the evidence produced by the petitioner, tbe respondent Assistant Collector directed release of 11 watches, out of the number of watches seized, by his letter dated September 18, 1963 and thereafter, by another letter dated February 27, 1964, directed release of 10 more watches. At last, on March 6, 1964, the respondent Assistant Collector sent to the petitioner a notice, under Section 124 of the Customs Act, 1962, couched in the following language: "In course of search on 19-3-63 of the shop of M/s Wallfon Watch Co. 218 Gents and Ladies watches of foreign origin, were found. The proprietor of the shop Shri Malhotra could not, however, produce on the spot documents to cover legal importation of 131 watches and made a statement that he would produce the vouchers and the receipts as early as possible. The watches i.e. 131 pcs. were accordingly seized and brought to Custom House
(2.) On 7-5-63 M/s Wallton Watch Co. produced a number of vouchers to cover 125 pcs. of watches and assured that they would produce vouchers in respect of the remaining 6 watches later on but the party failed to do so in spite of repeated reminders.
(3.) On scrutiny of these vouchers and on completion of enquiries so far made, 21 pcs. of watches have been released to the party. In case of most of the remaining watches, the parties or firms from whom the watches in question were brought by M/s. Wallton Watch Co. either do not exist or they stated to have destroyed their old records and are, therefore, not in a position to furnish the particulars of legal importation of the watches sold by them.;