SHANTILAL CHHOTELAL AND CO Vs. M G ABROL

JUDGEMENT

(1.) THIS is an appeal under the Letters Patent against the order of Mr. Justice Shelat in Misc. Petition No. 86 of 1956. The Petitioners, who are appellants before us, had preferred a petition under Articles 226 and 227 of the Constitution before this Court for issuing a Writ of Certiorari quashing the order of the Additional Collector of Customs, Bombay levying a fine of Rs. 49,995. 75 np. in lieu of confiscation of a consignment of scrap iron which was exported by the petitioners and imposing a personal penalty of Rs. 35,000/- under section 167 (8) of the Sea Customs Act.

(2.) THE relevant facts may be summarised as follows;-- The Petitioners are a firm of Importers and Exporters of scrap iron. They used to export about 900 tons of scrap iron per year and for that purpose they applied for and obtained a licence from the Iron and Steel Controller. This licence was issued on 7th November, 1956 and thereunder the petitioners were authorised to export 900 long tons of steel skull scrap. Between October, 1956 and March, 1957 the Petitioners purchased scrap iron from various concerns and individuals at rates varying between Rs. 95/- per on and Rs. 207-8-0 per ton. Under that licence they were permitted to export steel skull scrap to Japan by S. S. "kuibjshev".

(3.) THE export of various commodities including scrap iron is controlled by provisions of Imports and Exports Control Act 1947 and by the Exports Control Order 1954. Under S. 3 of the Act, the Cenrral Government is enabled to make a provision prohibiting, restricting or otherwise controlling in all cases or in specified classes of cases the import as well as export of all goods of any specified description. By virtue of the powers conferred by 9. 3 of the Act, Exports Control Order, 1954 was promulgated on the 10th of May 1954. Clause 3 of the Order provides that except as otherwise provided in that Order, no person shall export any goods of the description specified in Schedule I, except under" and in accordance with a licence granted by the Central Government or by any officer specified in Schedule II. Entry No. B-3 contained in Schedule I of the Act relates to scrap containing any of the metals or alloys specified in entry C-9 of the Schedule. Entry C-9 deals with a number of metals one of which is 'iron and steel". Thus, reading the two entries together, it will be clear that so far as the export of scrap iron or scrap steel is concerned, it could only be effected under a licence issued by one of the authorities referred to in Schedule II of the Act. Amongst the authorities specified in that Schedule are, the Iron and Steel Controller, a Deputy Iron and Steel Controller, and an Assistant Iron and Steel Controller. The licence issued to the petitioners is signed by the Assistant Iron and Steel Controller.