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1959 (11) TMI 70 - HC - Customs

Issues Involved:
1. Legality of the Customs Officers' actions in detaining and searching the petitioner and his property.
2. Validity of the petitioner's allegations of duress and lack of fair hearing.
3. Whether the Customs Collector's involvement constituted a conflict of interest.
4. Legality of the confiscation of the currency notes and the motor car.
5. Applicability of the Foreign Exchange Regulation Act and Sea Customs Act to the petitioner's actions.
6. Legality of the penalty imposed on the petitioner.
7. Right of the Customs Department to retain the petitioner's personal money.
8. Alleged violation of international law regarding the right of innocent passage.

Detailed Analysis:

1. Legality of the Customs Officers' Actions:
The Customs Officers acted within their rights under Sections 169 and 171 of the Sea Customs Act, 1878, in searching the petitioner, his wife, and their cabin. The Chief Customs Inspector's decision to search the petitioner's car was also lawful under Section 171, despite the petitioner's contention that he was taken off the vessel by force.

2. Validity of the Petitioner's Allegations of Duress and Lack of Fair Hearing:
The court found no substance in the petitioner's allegations of duress and lack of fair hearing. The petitioner was allowed to consult a lawyer, who entered appearance on 28-12-1958 and obtained relevant documents. Both show cause notices provided sufficient time for a reply and offered the petitioner the opportunity to be heard in person. The court concluded that the adjudication was not one-sided and that the petitioner had a fair opportunity to defend himself.

3. Customs Collector's Involvement:
The petitioner's claim that the Customs Collector was both the complainant and the judge was dismissed. The Customs Collector had no involvement in the detection or investigation of the case, except for informing the petitioner to declare any gold, bullion, or currency in the car. This did not disqualify him from adjudicating the case.

4. Legality of the Confiscation:
The court held that the petitioner had no cause of action regarding the confiscation of the currency notes found in the car, as he disowned them. The confiscation of the motor car was upheld under Section 168 of the Sea Customs Act, as it was used as a receptacle for concealing goods liable to confiscation.

5. Applicability of the Foreign Exchange Regulation Act and Sea Customs Act:
The court found that the petitioner imported the currency notes into India when the vessel entered Indian territorial waters, thus violating Section 8 of the Foreign Exchange Regulation Act and Section 19 of the Sea Customs Act. The petitioner was also attempting to export the currency notes without the required permission, further violating these provisions.

6. Legality of the Penalty:
The penalty of Rs. 6000 imposed on the petitioner was found to be in accordance with item 73 under Section 167 of the Sea Customs Act, which allows for a penalty not exceeding three times the value of the goods. The court dismissed the argument that the maximum penalty under item 8 was Rs. 1000, as item 73 did not have such a limitation.

7. Right to Retain the Petitioner's Personal Money:
The court upheld the Customs Department's right to retain the petitioner's personal money ($1605 and Rs. 250) under Section 193 of the Sea Customs Act, which allows for the realization of penalties from any goods of the person concerned in the charge of an officer of customs.

8. Alleged Violation of International Law:
The court found no violation of the right of innocent passage under international law. The relevant municipal law was not in conflict with international law, and even if it were, the court would have to enforce the municipal law.

Conclusion:
The petition was dismissed with costs, and the court upheld the actions of the Customs Officers, the validity of the penalties, and the confiscation of the currency notes and the motor car. The petitioner's allegations of duress and lack of fair hearing were found to be baseless.

 

 

 

 

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