1960 (4) TMI 2 - HC - Customs

Court upholds customs seizure, dismisses petition, and rules on fundamental rights

CJ SHETH & CO. Versus MG ABROL

CJ SHETH & CO. Versus MG ABROL - 2002 (147) E.L.T. 57 (Bom.) Issues Involved:1. Jurisdiction of customs to seize or confiscate goods cleared for home consumption.2. Failure to provide reasons for seizure as per Section 181 of the Sea Customs Act.3. Validity of seizure based on warrants issued on alleged false statements.4. Constitutionality of Section 167(8) of the Sea Customs Act in relation to Articles 19(1)(f), 19(1)(g), and 31 of the Constitution.Issue-wise Detailed Analysis:1. Jurisdiction of customs to seize or confiscate goods cleared for home consumption:The petitioners contended that customs had no jurisdiction to seize or confiscate goods once they had been granted clearance for home consumption under the Sea Customs Act. They argued that the terms 'smuggling' and 'secreted' in Chapter XVII of the Act implied that only clandestinely imported goods could be seized. However, the court found that Section 178 allowed for the seizure of any goods liable to confiscation, regardless of whether they had been cleared for home consumption. The court also referenced Section 167(8), which provides for the confiscation of goods imported in violation of prohibitions or restrictions. The court concluded that the customs authorities had the power to seize goods even after clearance if they were liable to confiscation.2. Failure to provide reasons for seizure as per Section 181 of the Sea Customs Act:The petitioners argued that the seizure was invalid due to the customs authorities' failure to provide reasons for the seizure promptly, as required by Section 181. The court noted that Section 181 required a statement of reasons to be given 'on demand.' The petitioners had made an oral demand on March 1, 1959, and a written demand on March 6, 1959, but the customs authorities provided reasons only on March 21, 1959. The court found that while there was a delay, it did not invalidate the seizure. The court emphasized that the customs authorities had the power to seize goods under Sections 178 and 179 and that the delay in providing reasons did not necessarily result in the invalidation of the seizure.3. Validity of seizure based on warrants issued on alleged false statements:The petitioners contended that the warrants for seizure were issued based on false statements that the goods and documents were 'secreted.' The court found that even if the warrants were issued on false statements, the seizure and detention of the goods were valid under Sections 178 and 179, which allowed customs officers to seize goods liable to confiscation without a warrant. The court also noted that the documents seized were produced before the Magistrate and were in the possession of the customs authorities as per the Magistrate's directions.4. Constitutionality of Section 167(8) of the Sea Customs Act in relation to Articles 19(1)(f), 19(1)(g), and 31 of the Constitution:The petitioners argued that Section 167(8) violated their fundamental rights under Articles 19(1)(f) and 19(1)(g) by allowing the confiscation of goods from bona fide purchasers without notice. They contended that the provision was unreasonable and excessive. The court, however, held that the legislation was punitive and aimed at enforcing restrictions on imports for the public interest. The court referenced previous judgments, including the Supreme Court's decision in Shewpujanrai v. Collector of Customs, which upheld the validity of Section 167(8). The court concluded that the provision was reasonable and necessary for the enforcement of import restrictions and did not violate the petitioners' fundamental rights. The court also dismissed the argument that Section 167(8) violated Article 31, stating that confiscation was a penalty and not an acquisition or requisition of property.Conclusion:The court dismissed the petition, holding that the customs authorities had the jurisdiction to seize the goods, the delay in providing reasons for the seizure did not invalidate it, the seizure was valid even if based on false statements, and Section 167(8) of the Sea Customs Act did not violate the petitioners' fundamental rights. The petitioners were ordered to bear the costs of the proceedings.