TaxTMI 
TaxTMI 
2017 (8) TMI 982
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....it petition, bearing CWJC No. 20981 of 2011, and this Court, vide order dated 17-1-2013, Annexure 2 to the writ application, while allowing the release of the seized goods, had stated that the Court was not considering the issues raised in the writ petition on its merits. Subsequent thereto, the impugned order, contained in Annexure 3, has been passed on 31-5-2013, by which confiscation has been directed and a penalty of Rs. 2,00,000/- (Two lacs) has been imposed upon the petitioner. 3. Being aggrieved by the aforesaid order passed by the adjudicating authority, being the Additional Commissioner (Adjudication), Customs (Headquarters), Patna (Respondent No. 2), the petitioner seeks to set aside the same and also prays for quashing the order, by which penalty has been imposed upon him. 4. The short facts, which gave rise to the present case, are that the petitioner firm, being M/s. Adras Traders, having its office at UCO Building, H.B. Road, Fancy Bazar, Guwahati, Assam, had booked the consignment of betel nuts from Guwahati to Delhi/Amritsar in VPH No. 01900 of Capital Express (Train No. 13247) up to Katihar Railway Station and from where it was to be further transpo....
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....signment note No. 10179 which stood for dry nut, the consignor and consignee was one Mr. K. Chowdhury. 7. In view of the confiscation made by the Customs Department, on 16-11-2011 an application was filed by M/s. Adras Traders through their Counsel requesting them to verify the papers with regard to the betel nuts and release them forthwith. It was further stated through their authorized representative/Counsel that the application was restricted to the consignment of betel nuts only which was being carried in the parcel van. 8. Summons under Section 108 of the Act was issued to the claimant of seized betel nuts, M/s. Adras Traders, UCO Bank Building, H.B. Road, Fancy Bazar, Guwahati and also to the leaseholder of the said Railway Parcel Van, Shri Sandeep Kumar Tarar, Ulubari, G.S. Road, Guwahati, being Noticee No. 2 and Noticee No. 1 respectively, but the same were returned by the postal authority stating "incomplete address" and "not known" respectively. 9. Since the aforementioned goods were not released in favour of the petitioner on a representation made by them through their Counsel, the petitioner came to this Court in CWJC No. 20981 of 2011, which was....
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....as the Central Government may, from time to time, determine after following the procedure hereinafter specified. (1B) Where any goods, being goods specified under sub-section (1A), have been seized by a proper officer under sub-section (1), he shall prepare an inventory of such goods containing such details relating to their description, quality, quantity, mark, numbers, country of origin and other particulars as the proper officer may consider relevant to the identity of the goods in any proceeding under this Act and shall make an application to a Magistrate for the purpose of - (a) certifying the correctness of the inventory so prepared; or (b) taking, in the presence of the Magistrate, photographs of such goods, and certifying such photographs as true; or (c) allowing to draw representative samples of such goods, in the presence of the Magistrate, and certifying the correctness of any list of samples so drawn. (1C) Where an application is made under sub-section (1B), the Magistrate shall, as soon as may be, allow the application. (2) Where any goods are seized under sub-secti....
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....: "21. The expression 'reasonable belief' or 'reason to believe' occurs in several statutes. Reference may be made to Section 47(a) of the Income-tax Act, 1961; Section 178A of the Sea Customs Act, 1878; Section 66 of Gold (Control) Act, 1968 and so on. In Calcutta Discount Co. Ltd. v. Income Tax Officer (AIR 1961 Supreme Court, 372), a case under Section 34 of the Income Tax Act, 1922 corresponding to Section 147(a) of the Income-tax Act, 1961, the Apex Court held : "The expression 'reason to believe' postulates belief and the existence of reason for that belief. The belief must be held in good faith; it cannot be merely a pretence. The expression does not (sic) purely subjective satisfaction of the Income-Tax Officer." In Sheonath Singh v. Appellate Assistant Commissioner of Income Tax (Central) Calcutta (AIR 1971 Supreme Court 2451) it was held that the words "reason to believe" suggest that the belief must be of an honest and reasonable person based upon reasonable grounds and the officer may act on direct or circumstantial evidence but not on mere suspicion, gossip or rumour. It was further held that if the officer concerned acts on material which is irrelevant t....
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....as they have been brought into India without following the procedures prescribed under Sections 46 and 47 of the Act. 16. Learned counsel for the petitioner has further referred to the order passed by the adjudicatory authority and submitted that since the notice was never issued or served on the petitioner, there is no question of his evading the adjudicatory authority and it was in his interest to present his case before the adjudicatory authority. 17. Learned counsel for the Customs, however, submits that though it has been urged by the learned counsel for the petitioner that the provisions of the Act are not invocable, the impugned orders passed by the adjudicatory authority are wholly valid and no fundamental right of the petitioner has been abridged and the right to trade has also not been infringed. He further submits that the petitioner had violated certain norms and used unfair practice for conducting his trade and had also violated the sales tax and other laws. It is further submitted that Sections 46 and 47 of the Act have been clearly violated and, therefore, the goods so seized are liable for confiscation. 18. With regard to the submissions of t....