Confiscation of sale proceeds under customs law upheld where imported goods were treated as smuggled through bogus advance licences.

Sale proceeds of goods imported through a bogus firm against non-existent advance licences were held liable to confiscation under section 121 of the Customs Act, 1962 because the goods were treated as smuggled in nature and the statutory condition of knowledge or reason to believe was satisfied. The unpaid sale proceeds deposited by the appellant were found to represent the proceeds of those goods, bringing them within the confiscation provision. On that basis, confiscation was sustained and the appeal failed.

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Issues: Whether the amount representing the sale proceeds of imported goods was liable to confiscation under section 121 of the Customs Act, 1962, where the goods were found to have been imported against bogus advance licences.

Analysis: Section 121 of the Customs Act, 1962 provides for confiscation of the sale proceeds of smuggled goods where the seller has knowledge or reason to believe that the goods are smuggled. The goods in question were imported by a bogus firm against non-existent advance licences and were therefore treated as smuggled in nature. The amount deposited by the appellant represented the unpaid sale proceeds of those goods, and the statutory condition for confiscation stood satisfied.

Conclusion: The amount was rightly confiscated under section 121 of the Customs Act, 1962. The issue is decided against the appellant and in favour of the Revenue.

Final Conclusion: The appeal fails and the confiscation of the amount is sustained.

Ratio Decidendi: Sale proceeds of goods imported in circumstances showing knowledge of smuggling are liable to confiscation under section 121 of the Customs Act, 1962.

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