TaxTMI 
TaxTMI 
1981 (9) TMI 128
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....he address and telephone number of the petitioner were written. The said Chand Mohamed gave a statement that the watches recovered from him were intended for delivery to the petitioner and that he had brought them from Bombay where he had received them from a person known as Radhakrishnan. The officers went to the premises of the petitioner on the same day and found him with another person by name Verghese. The said Verghese was subjected to search and seven wrist watches of foreign origin were recovered from him. The said Verghese gave a statement that the watches recovered from him were purchased from the petitioner. Two rose coloured hoses were recovered from the premises of the petitioner and were found to be similar to hoses found on t....
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....timately passed by the authorities under the Act as to whether the penalty is being imposed either under clause (a) or (b) of S. 112 of the Act and this would vitiate the orders passed. On an appraisal of the submission made by the learned counsel along with the provisions of the Act and the relevant judicial pronouncements I am inclined to sustain the plea put forth on behalf of the petitioner. Clauses (a) and (b) of S. 112 of the Act read as follows :- "112. Penalty for improper importation of goods etc. - Any person (a) who, in relation to any goods does or omits to do any act which act or omission would render such goods liable to confiscation under S. 111, or abets the doing or omission of such an act, or (b) who acquires possession ....
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....hould not be allowed to be prosecuted on vague basis and camouflaged hypothesis and prejudice must be presumed to have been caused to the accused in these circumstances. Clause (a) of S. 112 of the Act contemplates the doing of an act or omitting to do an act in relation to any goods, which act or omission would render such goods liable to confiscation under S. 111, or abetting the doing or omission of such an act. Clause (b) of S. 112 of the Act lays down that any person who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping or concealing, selling or purchasing, or is any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under Sec. 11....
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....notice and as well as the orders passed by the authorities under the Act in the present case. There is only the bare quoting of S. 112 of the Act and there is no reference to either to clause (a) or (b) or both of S. 112 of the Act. The essential ingredients have not been specifically set out with reference to either of the clauses. Hence, it has got to be held that there was no making up of mind either at the earlier stage or at the subsequent stage of the prosecution of the proceedings and the passing of the orders thereon as to which of the clauses would be attracted in the instant case. The whole matter has been dealt with in a sphere of ambiguity. The present case is not a case where a wrong provision has been quoted, so that it can be....