A GOVINDARAJAN Vs. SUPERINTENDENT OF CENTRAL EXCISE

JUDGEMENT

(1.) The petitioner is a Managing Partner of the firm called "Select Trading Co. at Egmore, Madras. The firm is engaged in speculative business money lending and also as agents, brokers etc. On 15-12-1972, the Customs authorities have seized from the petitioner's possession a sum of Rs. 3,15,000. In this petition under Art. 226, he challenges the legality of the said seizure.

(2.) The seizure was made in the following circumstances : On 15-12-1972 the petitioner was travelling at Bangalore in a Car MIX) 6575 belonging to his firm. He was carrying 3 lakhs and 15 thousand in Indian currency. At about 2-15 p.m. while he was passing near Venkataramanappa Choultry on the Palace Road. Bangalore he was intercepted by the Assistant Collector of Central Excise - Respondent-2. who searched his car and seized the entire currency notes under a mahazar prepared. On the next day, he was produced before the Judicial Magistrate, Civil Station, Bangalore, to whom the petitioner complained that the respondents have obtained statements from him under duress. On 27-12-1972. the petitioner referred this Writ Petition praying for an order to quash the seizure and for a direction to the respondents to return the sum seized.

(3.) The petitioner in his affidavit has stated that the respondents have illegally searched his car and seized the amount which belongs to his firm. He has further stated that at the time of the search and seizure, Respondent-2 had no reason to believe that his car was being used in the smuggling of goods or in the carriage of any goods which have been smuggled. He has also stated that mere possession of currency notes cannot furnish "a reason to believe" for any case of smuggling and no businessman at this rate is safe from the tyranny of the Customs officials. It is partinent to remember that during the search of the petitioner and his car, nothing incriminating in nature was revealed. That was so stated in the mahazar dated 15-12-1972 prepared by the respondents after completion of the search.