SHYAMLATA SHARMA Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) BEING aggrieved by the Order No. 22-Cus. (P) 84 dated 24-7-1985 passed by learned Additional Collector of Customs (Preventive), Indo-Nepal Border, Muzaffarpur, imposing penalties under Section 112 of the Customs Act, 1962 on the above three appellants, and also ordering absolute confiscation of the properties seized in the case valuing at Rs. 2,87,341/-, the above mentioned appellants have presented the captioned three appeals, with a prayer to set aside the same. The appellant Shri Narayan Sharma appealed against the imposition of the penalty of Rs, 2000/- on him, and the appellant Shri M.M. Shastri appealed against the imposition of a penalty of Rs. 10.000/- against him and the appellant Smt. Shyam Lata Sharma appealed against the imposition of penalty of Rs. 50,000/- against her and also against the confiscation order of goods in question, valuing at Rs. 2,87,341/-.

(2.) Briefly stated, the facts of the case are that on the basis of prior intelligence that a consignment of smuggled watches procured by Smt. Shyam Lata Sharma was kept concealed in the safe and almirahs in the two rooms resided by Smt. Shyam Lata Sharma and family, the Assistant Collector of Customs (P. & I), Varanasi, issued a Search Warrant on 3-11-1983 under Section 105 of the Customs Act, 1962, for search of the premises at D.48/148 B. Misir Pokhra, Varanasi, occupied by Shri Madan Mohan Shastri, Smt. N.K. Sharma, her husband and family and in pursuance of the search warrant, the Customs Officers of Varanasi reached the residential premises at about 14.00 hrs. on 3-11-1983. Shri Madan Mohan Shastri and Smt. Shyam Lata Sharma, wife of Nand Kishore Sharma and one Shri Anwar Kasim, S/o Shri Shabbir Hasan residing at D. 50/244, Dalmandi, Varanasi, were found present in the aforesaid premises. The said Customs officers showed the search warrant to Smt. Shyam Lata Sharma and Shri Madan Mohan Shastri and got the same signed by them in token of having seen and read it, and in the presence of two independent witnesses searched the aforesaid residential premises. During the search, 1195 wrist watches of foreign origin worth Rs. 2,00,500/-, 1383 pcs. of electronic cells of foreign origin worth Rs. 2,766/-, 19 Citizen watch straps of foreign origin worth Rs. 95/-, 48 watch chains of foreign origin worth Rs. 480/-, 1 Stereo Tape Recorder of foreign origin worth Rs. 3000/-, 1 V.L. Tone Musical instrument of foreign origin worth Rs. 500/- and some diaries/loose papers were recovered. Out of the above goods, 1091 wrist watches worth Rs. 2,54,300/-, 572 pieces of electronic cells of foreign origin worth Rs. 1144/-, 19 pieces of Citizen watch straps worth Rs. 95/-, 28 pieces of watch chains worth Rs. 280/- and one Stereo Tape Recorder worth Rs. 3000/- were recovered from steel almirah in room No. 1 and 104 watches worth Rs. 26,200/-, 20 pieces of watch chains worth Rs. 200/-, 811 pcs. of electronic cells worth Rs. 1622/- and 1 Casio V.L. Tone Musical Instrument worth Rs. 500/- were received from the wooden almirah from room No. 2. A Panchnama were prepared in the presence of Smt. Shyam Lata Sharma and the witnesses. Since none of Smt. Sharma, Shri Shastri and Shri Anwar Kasim could give any proof of legal import/acquisition in respect of the aforesaid foreign goods, the same and diaries/documents were seized on 3-11-1983 under Section 110 of the Customs Act, 1962.

(3.) THEREAFTER, the reply to the Show Cause Notices were received from the various parties and adjudication proceedings resulted in the abovesaid order, which is the ject matter of appeal before us as mentioned above. The learned Advocate Shri Mukhopadhyay and learned Consultant Shri K. Chatterjee appearing for the appellants made two-fold contentions to the effect that the imposition of the penalty is not in accordance with law and that the confiscation of goods is illegal as the Show Cause Notice was issued after the expiry of six months in this case and there was no instructions obtained in this regard from the proper authorities.