JHUMARMAL JAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ application has been filed for refund of an amount of Rs.85,600/- being the value of 56 bags of poppy seeds released plus Rs.500/- being the penalty amount with a further claim for interest @ 18% P.A.

(2.) The brief facts of the case are as follows:

(3.) The petitioner is a business man at Guwahati. 144 bags of poppy seeds were despatched from Manipur to the petitioner for arranging transportation thereof. The Custom authority seized the said 144 Bags of poppy seeds weighing 9800 Kg. on 24.12.85 under the seizure case. The goods being perishable in nature, were released provisionally on payment of security of the full value of Rs. 1,56,000/-. Thereafter, the petitioner filed an appeal before the Collector of Customs and Central Excise at Shillong and thereafter the Collector of Customs & Central Excise passed the following finding and order was passed: "Findings I have gone through the case records including reply to the Show Cause Notice, submissions made at the time of personal hearing and further written submissions made at the time of personal hearing. I find that out of 144 bags of poppy seeds seized the party had purchased 56 bags of poppy seeds locally in Imphal and 76 bags were released to them by the Customs at Dimapur and 12 bags at Imphal. As the party has their office in Imphal, therefore, I am prepared to accept that 76 bags released by the Customs to them at Dimapur were taken by them to Imphal. Thus, I hold that out of 144 bags poppy seeds seized by the Customs, 88 bags were accounted for and legally procured by them. For remaining 56 bags the party has submitted a number of pleas indicating that poppy seeds were available in Manipur. In support of this they produced a letter from the Deputy Director of Agriculture as also some news papers. The Deputy Director, Agriculture's letter indicate that some villages in Manipur had started growing posta. As the laws stand today, opium poppy cannot be grown in any part of India unless licences are issued by the Central Government. Therefore, I am not prepared to accept the plea that 56 bags of poppy seeds which could not be accounted for by the party as legally procured were actually grown in some villages in Manipur. Further party's contention that the rices were being quoted in some newspapers about the rate at which poppy; seeds were available in Imphal on this I can only say that as opium poppy is permitted to be legally cultivated in the States of Madhya Pradesh, Rajasthan and Uttar Pradesh I think poppy seeds can find its way elsewhere also in India from these states. As the party could not produce any evidence indicating that these poppy seeds were procured by them from cultivators or wholesale dealers in these states the contention of the party fails. Order Having regard to the facts and circumstances of the case as discussed above, I hold that out of 144 bags of poppy seeds seized by Customs, 88 bags were legally procured by the parties. Remaining 56 bags were, therefore, obtained cladestinely and therefore, are confiscated absolutely under Section-111(b) & (d) of the Customs Act, 1962. I also impose a personal penalty of Rs. 1,000 (Rupees one thousand only) on Shri Dharmavir Choudhury, Thangal Bazar, Imphal. I also impose a personal penalty of Rs.500/- (Rupees five hundred) on Shri Jhumermal Jain, Shop No. 5, T.R. Phukan Road, Guwahati and Rs.500/- (Rupees five hundred) on M/s. Assam Haryana Roadways (Pvt) Ltd., Guwahati for arranging sale and transport of the goods under Section-112(B) of the said Act. As the 56 bags confiscated absolutely have been released against the deposit of value thereof. I therefore appropriate Rs.85,680/- being the value cf the 56 bags of poppy seeds confiscated absolutely to the Govt. Account. Remaining amount may be refunded. Penalties etc. may be recovered separately."