PRABHAKAR R MODCOICAR; NARAYAN R BANDEKAR Vs. ADDITIONAL CHIEF CONTROLLER OF IMPORTS AND EXPORTS & ANOTHER

JUDGEMENT

(1.) The Orders dated 2nd/9th September, 1986 and 20th July, 1987, passed respectively by the Additional Chief Controller of Imports and Exports, New Delhi and the Appellate Committee Cell, Ministry of Commerce, Government of India, New Delhi, are the subject-matter of challenge in these two Writ Petitions under Articles 226 and 227 of the Constitution of India. The issues in both the petitions are intimately connected and hence, this common judgment.

(2.) The facts. The petitioner Prabhakar Raghuvir Modcoicar had been working in Saudi Arabia. On his return for good to India he applied for the import of a MAZDA 929 car for his personal use i.e. for being used for his personal transport. This application was granted and the import license bearing No. CCP/P/J/0489532 dated 1st March, 1986, in respect of that car which was valued at Rs.60.000/- was issued to him subject to some conditions. He had to execute in terms of those conditions, a bond for an amount equal to the c.i.f. value of the vehicle as assessed by the Customs Authorities and he was also barred within the "No Sale" period from transferring the ownership or the possession of the said car without prior written permission of the local Licensing Authority, the "No Sale" period being for five years from the date of the purchase or two years from the date of the import, whichever was later. Accordingly, petitioner Modcoicar executed a bond for Rs.60.000/- complying with the legal requirements to import the said MAZDA car for his personal use. This car was however, found by the Income Tax authorities Bangalore, being used by the petitioner Narayan R. Bandecar, and kept in the letter's premises at 'Archana', 1179, 35th C Cross, Jayanagar, Bangalore.

(3.) This fact was, it seems intimated to the Chief Controller of Imports and Exports, New Delhi, by the Commissioner of Income Tax, Banglore, through a letter dated 20th January, 1986, alongwith other relevant information, namely that Bandekar has alleged to be in possession of the said car under an agreement entered into by him with Modcoicar which was styled AS Hire Agreement. Acting upon the said information, the Deputy Chief Controller of Imports and Exports made an Order on 23rd April, 1986, directing the seizure of the car in question. Thereafter, the Additional Chief Controller of Imports and Exports issued a notice to the petitioners Modcoicar and Bandekar to show cause why the said vehicle should not be confiscated and penalty imposed on them for violation of the Customs Clearance Permit (CCP) conditions and of the provisions of the Imports and Exports (Control) Act, 1947, hereinafter referred to as "the Act". Both the petitioners filed their replies and finally, the Additional Chief Controller of Imports and Exports by his Order dated 2nd/9th September, 1986, ordered the confiscation of the car and imposed a penalty of Rs. 1,00,000/- only on the petitioner Bandekar as having abetted the aforesaid violation. The bond for Rs. 60,000/- executed by the petitioner Modcoicar was equally forfeited in separate proceedings.