Reasonable belief requirement governs seizure of excisable goods, and absence of competent officer's belief invalidates seizure

Seizure of excisable goods and records is valid only where the proper officer exercises a seizure power traceable to the applicable provision and holds a reasonable belief that the goods are liable to confiscation. The customs provisions made applicable to central excise matters did not authorise seizure under the other provisions invoked by the revenue, and section 118(a) concerned confiscation of packages rather than seizure of the goods themselves. As the record did not establish the requisite reasonable belief by the competent officer, the legal foundation for seizure was absent and the seizure was invalid.

---

---

Issues: Whether the seizure of the excisable goods and records was valid in law, having regard to the requirement of reasonable belief and the source of power under the applicable customs provisions as modified for central excise matters.

Analysis: The seizure could be justified only if the power traceable to the applicable seizure provision was exercised by the proper officer on a reasonable belief that the goods were liable to confiscation. The notification making certain Customs Act provisions applicable to central excise matters did not authorise seizure under the other provisions relied on by the revenue. Section 118(a) dealt with confiscation of packages and other goods contained therein, not seizure of the excisable goods themselves, and the other rules cited were either unrelated to seizure or dealt only with accounts, duty payment, inspection, or confiscation after contravention. The record did not establish that the proper officer entertained the requisite reasonable belief, and the foundation for a lawful seizure was absent.

Conclusion: The seizure was invalid and liable to be quashed.

Final Conclusion: The petitioner succeeded and the impugned seizure was set aside, with costs awarded.

Ratio Decidendi: Where seizure power is conditioned on the proper officer's reasonable belief that goods are liable to confiscation, absence of that belief by the competent officer renders the seizure unlawful.

---