LAWS(BOM)-1952-9-1

CHHOGUMAL KODUMAL Vs. COLLECTOR OF CUSTOMS

Decided On September 04, 1952
CHHOGUMAL KODUMAL Appellant
V/S
COLLECTOR OF CUSTOMS Respondents

JUDGEMENT

(1.) This is a petition for a writ of certiorari for quashing certain orders made under the provisions of the Sea Customs Act, or for a writ of prohibition or mandamus or a direction in the nature of prohibition or mandamus restraining the Union of India from enforcing the said orders.

(2.) The petitioner Chhogumal Kodumal carries on business in the name of Messrs. Kodumal Motiram. On the 24th of September, 1949 Messrs Hassanali Bros. indented under their import licence 9,000 dozens optical frames from Messrs. Paul E. Sernau of New York. They sold the goods before arrival to Messrs. Hansraj Shadilal Jain, who in their turn sold them to Messrs. Kodumal Motiram on the 10th of October, 1949. The consignment arrived packed in 30 cases on the 9th of January, 1950 and was cleared on behalf of Messrs. Hassanali Bros. upon payment of customs duties and other charges. It was subsequently discovered that these cases contained not optical frames but goggles. Import of goggles was at this time prohibited and therefore by a notice to show cause addressed to Messrs. Hassanali Bros. the Collector of Customs called upon them to show cause why action should not be taken against them under section 167(8) of the Sea Customs Act and also under section 167(37). An inquiry was held, and as a result of the inquiry the Collector of Customs, Bombay, by an order dated the 5th July, 1950 ordered confiscation of these goods and also imposed a penalty of Rs. 2,500 on Messrs. Hassanali Bros. and of Rs. 5,000 on Mr. Chhogumal Kodumal as a person concerned in the commission of the offence under section 167(8) and section 167(37) of the Sea Customs Act. Against this order there was an appeal to the Central Board of Revenue, and the Board by its order dated the 7th of August 1951 modified the Collector's order only to the extent of reducing the penalty imposed on the petitioner from Rs. 5,000 to Rs. 2,500. Against this decision of the Revenue Board a representation was made to the Central Government, and the Government of India by their order dated the 19th April, 1952 saw no reason to interfere with the order passed by the Central Board of Revenue. It is these orders that have been challenged before me.

(3.) The ground on which the order of the Collector of Customs has been challenged is that the petitioner was entitled to notice of any inquiry relating to the confiscation of the goods, and in any event no penalty could be imposed upon him without his being heard, the imposition of such a penalty without being heard being contrary to the fundamental principles of justice.