MANILAL BHANABHAI PATEL Vs. KAUL

JUDGEMENT

(1.) THE simple question which is involved in this petition is whether the authority issuing show cause notice contemplated by Section 124 of the Customs Act, 1962 (which is hereinafter referred to as "the Act') should be the same which can conduct adjudication proceedings contemplated by Section 122 of the said Act. Such a show cause notice under Section 124 of the Act has been issued in this case by Assistant Collector of Customs, Central Excise, Surat on 31st January, 1969 requiring the petitioner and others to show cause why the silver weighing 2770 Kgs. valued at Rs. 16,07,127.00 seized on 27 -8 - 1968 from the premises of one Shri Manilal Jaganji Desai of village Tukwada, should not be confiscated under Section 113 (c) of the Act and why penalty should not be imposed under Section 114 of the Act. The petitioner, has approached this court by this petition making a grievance against this show cause notice principally on the ground that looking to the value of the silver which is seized it is only the Collector of Customs or a Deputy Collector of Customs who is authorised under Section 122 (a) of the Act to conduct the proceedings regarding confiscation and penalty and, therefore, the show cause notice, which is contemplated by Section 124 of the Act, ought to have been issued only by the Collector of Customs or the Deputy Collector of Customs authorised to hold the adjudication proceedings, and not by the Assistant Collector of Customs. The petitioner in his petition has raised various other points but none of these points are pressed fur the purpose of this petition with the result that the only point which is indicated above remains to be considered in this petition.

(2.) SHORT facts leading to this petition are that the petitioner is an agriculturist but claims to be dealing in silver. He is a resident village Dabhel and claims to have entered into partnership with one Kadirbhai Ismailbhai of village Chikhali for carrying on the business of silver and silver bullion. According to him, document of partnership between the two was executed on 7 -6 -68 and it was decided to carry on the business of silver bullion, silver ornaments and silver articles in the name of M/s. Manibhai Kadirbhai and Co. at village Vapi.

(3.) IT is further contended by the petitioner that usually silver bullion is purchased in big lumps and thereafter cut into small pieces at refineries situated at Navsari. According to the petitioner he had made sour arrangements with one Gulabbhai Dajibhai Patel of Navsari to act as his commission agent for selling the silver after getting it cut into small pieces at the refineries at Navsari.