K K SHAIK DAWOOD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) S. S. State of Madras" arrived at the Madras Harbour on 16. 4. 1958, with passengers from Fenang. One Nagoor Meera, who arrived by that steamer brought with him a Raleigh cycle as his personal baggage. The Customs authorities had evidently some reason to suspect that the cycle contained prohibited goods and on closer examination, the sterns of the rear forks of the cycle were found to contain 397 gold pellets weighing 126-43 tolas. Nagoor Meera gave a statement before the authorities that the cycle was sent by one Sikkander of Penang with instructions to hand it over to Shaik Dawood, the appellant before us.

(2.) IMPORT of gold has been prohibited by a notification under Section 23 of the Foreign Exchange Regulation Act 1947. The appellant did not dispute that he was concerned with the illegal importation of the goods concealed in the cycle. After giving a reasonable opportunity to the appellant, the Collector of Customs, by his order, dated 4. 2. 1959, confiscated the gold and imposed a personal penalty of Rs. 25,000 on the appellant under Section 167 (8) of the Sea Customs Act 1878. The appellant, not being the actual smuggler was not concerned with the propriety of the confiscation ordered; but he challenged the validity of the personal penalty imposed on him by application to this Court under Article 226 of the Constitution. Veeraswami J. has dismissed that application and hence this appeal.

(3.) SECTION 8 of the Foreign Exchange Regulation Act 1947 empowers the Central Government by a notification in the official gazette to order that no person shall except with the general or special permission of the Reserve Bank bring into this country any gold or silver, etc. It is not a matter in dispute that there was a notification under the provisions of that section on 25. 8. 1948, that no person shall bring into India any gold, etc. , without the general or special permission granted by the Reserve Bank of India. Contravention of the restriction is made punishable under Section 23 of the Foreign Exchange Regulation Act. That provides for the prosecution of the offender in a court of law; it further empowers the court trying the offence, in addition to any sentence or penalty, which it may impose for such contravention to direct that any currency, security, gold or silver, etc. , so unauthorisedly brought shall be confiscated to the Central Government. Section 23, therefore, provides a punishment for the offence of contravening the restrictions imposed by the Act and it authorises the Magistrate who tries the case to confiscate the goods in respect of which the offence has been committed.