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Issues:
1. Lack of jurisdiction in imposing a fine by the Collector of Customs. 2. Violation of principles of natural justice in the procedure followed for imposing the fine. Detailed Analysis: Issue 1: Lack of jurisdiction in imposing a fine by the Collector of Customs The petitioner, an exporter of handloom goods, was fined Rs. 10,000 by the Collector of Customs for exporting power-loom goods, which were prohibited at the time. The fine was imposed without giving notice to the petitioner to show cause or conducting an inquiry. The Collector's order was challenged on the grounds of lack of jurisdiction and violation of natural justice. The appellate authority, the Central Board of Revenue, confirmed the Collector's order. However, the High Court held that the Collector's order was a nullity as it was passed without following the principles of natural justice. The Court ruled that the lack of notice and opportunity to prove innocence rendered the order illegal and without jurisdiction. The Court overruled the objection to its jurisdiction and quashed the Collector's order. Issue 2: Violation of principles of natural justice in the procedure followed for imposing the fine The petitioner's case involved the confiscation of a bale of power-loom goods, bale No. 1202, which was mistakenly shipped despite being prohibited for export. The petitioner had attempted to pay the penalty for the confiscated bale but faced delays and lack of response from the Customs authorities. The Court noted the negligence of the Customs authorities in handling the petitioner's requests and highlighted the importance of timely responses in such matters. The Court emphasized that the Collector's order imposing the fine of Rs. 10,000 was invalid due to the lack of notice and opportunity for the petitioner to defend against the allegations of collusion and illegal export. The Court held that even if mens rea was not a requirement under Section 167(8) of the Sea Customs Act, the absence of notice deprived the petitioner of a fair chance to defend himself. Consequently, the Court quashed the Collector's order and awarded costs to the petitioner for the writ petition.
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