Customs confiscation remains valid when independently authorised, even without a fine option under an ancillary provision.
Confiscation of goods imported contrary to the Imports and Exports (Control) Act may be authorised through the Sea Customs Act prohibition regime. The option to pay a fine in lieu of confiscation is ancillary and does not create the confiscatory power; its omission does not invalidate confiscation otherwise authorised under the customs provisions. Applying the Sea Customs Act to controlled goods does not itself create an unconstitutional classification under Article 14. Notice and an opportunity to be heard satisfy procedural fairness where the affected party declines that opportunity, and personal hearings are not required at every appellate or revision stage. Unsupported allegations of mala fides do not vitiate confiscation proceedings.
Issues: (i) Whether a confiscation order under the Sea Customs Act was invalid for not granting an option to pay a fine in lieu of confiscation when goods were imported in contravention of the Imports and Exports (Control) Act, 1947. (ii) Whether the modification made by Section 3(2) of the Imports and Exports (Control) Act, 1947 to Section 183 of the Sea Customs Act offended Article 14 of the Constitution of India. (iii) Whether the confiscation order was vitiated by mala fides, denial of hearing, or because the appeal and revision proceedings were not personally heard.
Issue (i): Whether a confiscation order under the Sea Customs Act was invalid for not granting an option to pay a fine in lieu of confiscation when goods were imported in contravention of the Imports and Exports (Control) Act, 1947.
Analysis: The goods were held to fall within the prohibition regime created by Section 3(2) of the Imports and Exports (Control) Act, 1947, which deems such goods to be prohibited under Section 19 of the Sea Customs Act. On that basis, confiscation was authorised under Section 167, Item 8 of the Sea Customs Act. The option contemplated by Section 183 was not the source of the confiscatory power; it only operates after confiscation has otherwise been authorised. The absence of an option did not therefore invalidate the order.
Conclusion: The confiscation order was valid and the absence of an option to pay a fine in lieu of confiscation did not help the petitioner.
Issue (ii): Whether the modification made by Section 3(2) of the Imports and Exports (Control) Act, 1947 to Section 183 of the Sea Customs Act offended Article 14 of the Constitution of India.
Analysis: Section 3(2) itself merely applies the Sea Customs Act to goods covered by the control order and does not confer any discretion on customs authorities. Any constitutional objection, if at all, would relate to the modified operation of Section 183, but the Court held that even if the modified provision were assumed to be vulnerable, that would not affect the validity of the confiscation order, which rested on Section 167, Item 8. The provision under challenge did not itself create the confiscatory power or any unconstitutional classification.
Conclusion: No relief could be granted on the Article 14 challenge, and the confiscation order remained unaffected.
Issue (iii): Whether the confiscation order was vitiated by mala fides, denial of hearing, or because the appeal and revision proceedings were not personally heard.
Analysis: The petitioner had been given notice and an opportunity to be heard, which he declined. The materials also justified the customs authorities in treating the import as deliberate and in declining to grant the option to pay a fine. The appeal to the Central Board of Revenue was filed out of time, and there is no rule requiring a personal hearing at every stage, including revision. The allegations of mala fides and procedural unfairness were unsupported.
Conclusion: The challenge based on mala fides and denial of hearing failed, and the appellate objection was untenable.
Final Conclusion: The customs order of confiscation and penalty was upheld, and the writ application failed in its entirety.
Ratio Decidendi: Where confiscation is independently authorised by the customs prohibition scheme, the omission to grant an option to pay a fine under a modified ancillary provision does not invalidate the confiscation order, and a provision that merely applies another statute to specified goods does not by itself offend Article 14.