RAMAKRISHNA AGGARWAL Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE petitioners have challenged the order passed by the Collector of Customs and Central Excise, Orissa dated 2.9.1980 confiscating silver weighing 370.850 kgs. under Section 113(l) read with Section 11K and allowing redemption thereof under Section 125 on payment of Rs. 2,00,000 and further confiscating an Ambassador car bearing registration No. 1763 under Section 115(2) and allowing redemption thereof on payment of Rs. 25,000 and still further imposing penalty under Section 114(i) of the Customs Act, 1962 (hereinafter referred to as 'the Act').

(2.) FACTS stated by petitioner No. 1 are that he carried on money lending business independently in his individual capacity with effect from 21.6.1974 and then started business in silver from 13.9.1976. He was assessed with income tax as an individual. He made local purchases of silver in the shape of old silver coins and old silver ornaments from Tarava market. On 26.9.1976 he transported in the Ambassador car bearing registration No. 1763,17 silver bars, 98 silver coins, 4 silver sticks, 2 round shaped silver plates and 9 silver ingots in all weighing 370.850 kgs. for being melted at Bargarh. The driver of the car was petitioner No. 4 who was accompanied by petitioner No. 3. The intention of petitioner No. 1 was to send the silver to M/s. Jalan Co., Calcutta with whom his natural father, petitioner No. 2, a partner of the firm M/s. Nagarmal Chhotelal had business transactions in silver. On the way between Tarava and Bolangir, at about 5.00 a.m. the car was intercepted by the officers of the Central Excise and Customs and silver was seized. Thereafter, a proceeding was initiated for confiscation of silver and the car and notices to show cause were issued by the Collector, Central Excise and Customs, Orissa (opposite party No. 1). After they appeared and showed cause, opposite party No. 1 by order dated 6.4.1978 passed order of confiscation of the silver and the car and imposed penalty. The petitioners filed O.J.C. No. 347 of 1978 and by order dated 18.12.1979, a Bench of this Court allowed the writ petition and directed opposite party No. 1 to redispose of the proceeding in accordance with law and accordingly remanded the case. The proceeding was again taken up by opposite party No. 1 and after hearing the petitioners the impugned order of confiscation and penalty (Annexure 7) was passed by opposite party No. 1 on the specific findings that the petitioners had made preparation for movement of specified goods into a specified area, namely, Bombay.

(3.) A few provisions of the Act and the notifications issued thereunder are necessary to be quoted to understand the case.