UNION OF INDIA Vs. F.V. ALBIN

JUDGEMENT

(1.) WE have listened to the strenuous arguments of counsel for the appellants on behalf of the Customs Authorities and the Union of India who have filed this appeal. The question raised is the power to order confiscation under Section 113(d) of the Customs Act. That provision and Section 113(i) read thus:

(2.) The goods were ordered to be NSCATED subject to the option of redeeming the goods by payment of Rs. 12,000/ - in lieu of confiscation. A penalty of Rs. 20,009/ - was imposed under Section 114, An appeal against the order to the Central Board of Excise and Customs, proved unsuccessful but the penalty was reduced from Rs. 20,000/ - to Rs. 10,000/ -.

(3.) THE question that arises is whether in respect of the exportable goods brought to the Customs wharf accompanied by a certificate of export worthiness, the authorities have power to cancel or to amend the certi ,:te, once it is found on inspection at the wharf or any time subsequent to its issue, that the goods were not export -worthy and that the certificate issued had proceeded on misrepresentation or fraud or misconception of facts. In answer to our questionwhether there was such power or not, our attention was called to Ext. Rl instruction which, it was said, gave the requisite power. It is styled a circular . Clause 2 of the circular reads as follows: 'It has now been decided to amend para 3.2 and to add two new paras 3.3 and 9.3 as under :