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Issues involved:
The issues involved in this case are the imposition of penalty under section 112 of the Customs Act 1962 without specifying the relevant clause, leading to ambiguity and lack of clarity in the proceedings. Details of the Judgment: 1. The petitioner was found in possession of wrist watches of foreign origin, leading to proceedings under section 112 of the Customs Act. The Collector of Central Excise confiscated the watches and imposed a penalty of Rs. 10,000 on the petitioner. The petitioner challenged the order, arguing that the penalty was imposed without specifying whether it was under clause (a) or (b) of section 112. The court upheld the plea, emphasizing the need for clarity in identifying the specific clause for penalty imposition. The Supreme Court precedent highlighted the importance of establishing essential ingredients of the offense to avoid ambiguity and prejudice to the accused. 2. Section 112 of the Act delineates penalties for improper importation of goods, with distinct clauses (a) and (b) specifying different scenarios for penalty imposition. The court stressed the necessity for authorities to clearly identify the applicable clause when imposing penalties. Failure to specify the relevant clause in the proceedings and orders renders them unsustainable. The judicial review can strike down orders if discretion under section 112 is exercised irrationally or ambiguously. 3. The court scrutinized the show cause notice and orders passed by the authorities, noting the absence of specific reference to clause (a) or (b) of section 112. This lack of clarity indicated a failure to determine the relevant clause throughout the proceedings, leading to ambiguity. The court emphasized that the discretionary powers under section 112 are subject to judicial review and must be exercised judiciously to avoid irrationality and ambiguity. 4. A similar case before the Calcutta High Court highlighted the importance of including relevant allegations in the show cause notice under section 112 to enable proper defense. In the present case, the lack of clarity and ambiguity in the proceedings rendered them unsustainable. The petitioner was deemed to suffer prejudice due to the ambiguous handling of the case, leading the court to allow the writ petition with no costs imposed.
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