TaxTMI 
TaxTMI 
1986 (11) TMI 62
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....hey were imported illegally. The seizure is said to have taken place on 7-9-1978. Thereafter the requirement of the show cause notice and other formalities were dispensed with, as in his statement, the junior partner has stated that the case may be adjudicated without a show cause notice. On the basis of the material, the Assistant Collector, Customs, respondent No. 3, on 11-9-1978 held that the seized goods were illegally imported and acquired in violation of the prohibition imposed under Section 3 of the Imports and Exports (Control) Act, 1947 read with Section 11 of the Customs Act, 1962. It was also held that the said Atchutharama Gupta is liable to penalty under Section 105 of the Customs Act as he was in possession of the contraband g....
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....cation under Section 111(d) is bad in law. Section 111(d) of the Customs Act, 1962 reads as follows : "111. CONFISCATION OF IMPROPERLY IMPORTED GOODS, ETC. :- The following goods brought from a place outside India shall be liable to confiscation : ) (a) .......................... (b) ............................ (c) .......................... (d) any goods which are imported or attempted to be imported or are brought within the Indian customs waters for the purpose of being imported, contrary to any provision, imposed by or under this Act or any other law for the time being in force." A perusal of the section, extracted above, makes it clear that for confiscation of the said goods, it must be shown that the goods are imported contrar....
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....t have had anything to do with the actual import. So long as it is proved that the goods had been imported against the restrictions imposed under Chapter IV, the goods remain liable to confiscation whenever found even if this is long after the import is over and even if they are in possession of persons who had nothing to do with the actual import. It is also well settled by the decisions of this Court that the second part of the penalty relating to any person applies only to a person concerned in the importation or exportation of the goods and does not apply to a person found in possession of the smuggled goods who had nothing to do with the importation or exportation thereof." In the above case it is clearly laid down that once it is pro....