SUBHASH EMBROIDERY WORKS Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS order will dispose of Civil Writ Petitions Nos. and 1650 of 1980 which relate to the same occurrence and in which common questions of law and fact are involved.

(2.) ON April 6, 1973, a contingent of Headquarters Preventive Staff (Customs and Central Excise) searched the business premises of Messrs Subhash Embroidery Works, Maleri Street, Ludhiana, (petitioner in C. W. P. No. 1404 of 1980) as well as the residential premises of Subhash Chander, Proprietor of Subhash Embroidery Works situate at house No. 515, Chowk Neemwala, Ludhiana. As a result of these searches, synthetic fabrics bearing foreign markings were recovered from both places. Twenty-six pieces measuring 412. 30 metres valued at Rs. 6,955/were recovered from the business premises and nine pieces measuring 270 yards and 19 pieces of Saris (18 white and 1 blue) measuring 109. 25 yards (total valued at Rs. 3,740/-) were recovered from the residential premises. The synthetic fabrics recovered were notified under Section 1 1b of the Customs Act, 1962, (hereafter the Act ). Subhash Chander could not produce any evidence documentary or otherwise showing their lawful acquisition, possession or legal importation. The fabrics were seized under Section 110 of the Act. The Preventive Staff recorded the statements of Subhash Chander and his brother Ashok Kumar at the time of the seizure of the fabrics wherein they admitted the recovery from their shop/residences and further stated that the same had been obtained for sale from some unknown persons who had not given any bill to them. They also stated that they had not filed any declaration in respect of these fabrics as required under Section 11c and further they have not maintained any account as required under Section 11e of the Act. The Deputy Collector Customs and Central Excise thereafter issued a show cause notice to the petitioner and vide order dated June 27, 1975, (Annexure P. 13) found the petitioner having contravened Sections 11d, 11e and 11f of the Act read with Section 3 (i) of the Import/export (Control) Act, 1947. The goods seized were ordered to be confiscated under Section 111 of the Act and a penalty of Rs. 4,000/- was imposed on the petitioner under Section 112 of the Act. The petitioner feeling aggrieved by the order Annexure P. 13 filed an appeal which was dismissed by the Appellate Collector vide order dated February 17, 1976, (Annexure P. 14 ). The petitioner then filed a revision which was disposed of by the Joint Secretary to Government of India vide order dated April 7, 1980, (Annexure P. 15 ). The order confiscating the goods was maintained, but the penalty was reduced from Rs. 4,000/-to Rs. 2,000/ -. The petitioner have assailed the orders Annexures P. 13, P. 14 and P. 15 in C. W. P. No. 1404 of 1980.

(3.) PREM Chand Kapur petitioner in C. W. P. No. 1650 of 1980 also filed an appeal against the order of the Deputy Collector Annexure P. 13 claiming that the fabrics other than 19 pieces of Saris belonged to him. His appeal as also the one filed by Messrs Subhash Embroidery Works was dismissed by the Appellate Authority by consolidated order dated February 17, 1976, (Annexure P. 2 ). His revision as also that of Messrs Subhash Embroidery Works were disposed of by the Joint Secretary to the Government of India vide consolidated order dated April 7, 1980, (Annexure P. 3 ). Prem Chand Kapur has assailed the action of the Customs Staff seizing the goods on April 6, 1973, and also the orders Annexures P. 2 and P. 3 in C. W. P. No. 1650 of 1980.