MANILAL BHANABHAI PATEL Vs. UNION OF INDIA

JUDGEMENT

(1.) . This Special Civil Application is filed against the judgment and order dated 25-2-1976 passed by the Additional Collector of Customs, Ahmedabad, under Sec. 113(c) of the Customs Act, 1962, confiscating 90 seized silver bars weighing 2770.900 kgs. and imposing a penalty of rupees two lacs against the petitioner under Sec. 114 of the Customs Act. By the impugned order penalty of Rs. 2000.00 was imposed against one Bhagwanji Gulabbhai Desai, who is not petitioner before this Court. Against the said order the petitioner preferred appeal before the Central Board of Excise and in appeal the said order is confirmed. The petitioner has, therefore, also challenged the order passed by the Central Board of Excise and Customs.

(2.) . The learned Counsel for the petitioner vehemently submitted that the order passed by the Additional Collector and the Appellate Order passed by the Central Board of Excise and Customs are illegal as the department has failed to establish the material ingredients of Sec. 113(c) of the Act. He contended that there is nothing on record to show that the petitioner brought the silver bars near the coast of India or near any bay; gulf, creek or tidal river for the purpose of being exported. It is his contention that even for the time being if it is presumed that petitioner has brought the said silver at village Tukwada, then also at the most it would amount to preparation for committing an offence, but it cannot be said that the petitioner has committed any offence.

(3.) . For appreciating the contention which is advanced by the learned Counsel for the petitioner, it would be necessary to refer to the facts which are relied upon by the Additional Collector. The Customs Officers of Vapi received information at 2-00 hours at night on 27-2-1968 regarding concealment of huge quantity of silver which was meant for illegal export out of India. They received the information that it was kept in the house of one Manibhai Jaganji Desai of Tukwada village near Vapi. In presence of panchas house of Manibhai Desai was searched at 2- 30 a.m. In the course of search the officers recovered 90 bars of silver weighing 2770.900 kgs. from the closed room of the house of Manibhai Desai. The copy of the panchnama is produced at Annexure 'D' to this petition. Manibhai Desai was not in possession of any documents in the form of purchase vouchers or transport documents to show bona fide acquisition and possession of the silver bars found in his house. Manibhai Desai disclosed that the said silver bars were deposited in his house by one Manilal Bhanabhai Patel of Dabhel, who was resident of Vapi. Manilal Patel wanted to store the silver secretly for a short period, that is, for one night only. The said silver bars were seized by the officers on a reasonable belief that they were liable to confiscation under the Customs Act, 1962.