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Issues:
Confiscation of gold under Sea Customs Act and Foreign Exchange Regulation Act, imposition of penalty on the petitioner firm. Detailed Analysis: The petitioner firm, a Hindu Mitakshara Joint family, was engaged in the business of gold and silver. An employee of the firm was apprehended by a Land Customs Officer while carrying gold to Calcutta, leading to the seizure of the gold. The employee initially denied carrying gold but later admitted to it, stating he was under instructions from the employer. The firm denied involvement in smuggling and claimed the gold was purchased locally. Samples of the seized gold were assayed, showing varying refinements. The Customs Collector concluded that the gold was of foreign origin and unlawfully imported, leading to confiscation and imposition of penalties. The petitioner firm challenged the order before the High Court, facing a preliminary objection regarding delay in filing the petition. Despite the delay, the Court decided to hear the case due to the unjustified penalty imposed on the firm. The Court noted the suspicious circumstances of the gold seizure, including the employee's concealment of gold and instructions from the employer to deny possession. The onus was on the petitioner firm to prove the gold was not smuggled, which they attempted through assay reports. However, the reports indicated foreign origin, supporting the belief of smuggling. The Court upheld the confiscation but found the firm not directly involved in importation, as mere purchase did not establish complicity in smuggling. The Court modified the order by setting aside the penalty imposed on the petitioner firm but affirmed the rest of the decision. A writ of certiorari was issued to quash the penalty imposition, making the Rule absolute to the extent specified. The judgment highlighted the distinction between purchasing unlawfully imported goods and being actively involved in their importation, aligning with previous legal interpretations on the matter.
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