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TMI Blog1985 (7) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... articles weighing more than 700 kgs. in the normal course of their business. The transactions were entered in the "Roj-Mel" as also in the purchase book. On the same day Petitioner No. 1 firm sold some of these silver articles to one Messrs Sun Shine Traders. The firm however, decided to send the remaining silver articles to one Manubhai Chhaganlal Dosalbhai at Ahmedabad. For this purpose the petitioners sent 24 boxes containing these silver articles to the firm of M/s. Kantilal Somabhai Angadia who were running a carrier service between Bombay and Ahmedabad. The total net weight of silver contained in these 24 boxes came to over 700 Kgs. and its value came to Rs. 3,70,000/-. The petitioners however, declared these boxes as containing machi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bracelets), silver statues of assorted "heavy" creatures such as elephants of rhinoceroses, statues of a female figure and busts of Tagore. There is also a certain quantity of scrap silver in crude shapes. Now, under Chapter IVB of the Customs Act, 1962 certain provisions have been made, inter alia, for prevention or detection of illegal export of goods. This chapter relates to "specified goods''. Under Section 11-H(3) of that Chapter "specified goods" are defined to mean "goods of any description specified in the notification issued under Section 11-I in relation to a specified area". Under a Notification No. 7-Cus., dated 3rd January, 1969 issued under the provisions of Section 11-1 of the Customs Act, 1962 the Central Government has noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proper officer. A violation of the provisions of this chapter can result in confiscation of goods under Section 113 of the Customs Act. Under Section 114 there is a penalty for attempt to export goods improperly. Under Section 111 there is a provision for confiscation of goods used for concealing smuggled goods. 7. The provisions of these sections are sought to be applied in respect of silver articles of the petitioners on the ground that these articles are "silver bullion" and are therefore "specified goods" under the Notification of 3rd January, 1969. It is the contention of the respondents that these articles are silver bullion in the shape of statues, plates, "kadas" and so on. 8. The term "silver bullion" is not defined either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "specie". According to common parlance, the word "Specie" means any metallic coin which is used as currency. Ornaments and other articles of gold cannot be described as 'specie". In that case the term 'bullion' was not defined under the Kerala General Sales Tax Act. The Supreme Court interpreted the term by applying the principle that entries in Sales Tax legislation must be construed as understood in common parlance, by people conversant with this commodity. 10. In the case of H.R. Syiem v. P. C. Lulla reported in (1970) 72 Bom. L.R. 534 this court was required to construe an entry under the Import Trade Control Schedule. The question was whether black insulating tapes fell within the meaning of expression "adhesive tape". On a differenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The articles were also unpolished and they could not be used in their present form. In the first place, it is not clear why the second panchanama was made when a panchanama was already made on 26th May, 1969 when the articles in question were seized. Secondly the qualifications of the panch witnesses are also not clear. There is nothing on record to show that these panchas were carrying on business in silver or were in any way familiar with trading in silver. The petitioners were not given any notice of the second panchanama nor were they given an opportunity at any stage to cross-examine the panchas. In these circumstances the learned trial Judge has rightly not relied upon the second panchanama. 14. Had it been the intention of the legi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lt to accept such an interpretation. The meaning of a term in a legislation has to be interpretated in the context of the legislation. But an expression which is not defined in a statute cannot be given an artificial meaning on the basis of Statement of Objects and Reasons. The Statement of Objects and Reasons can certainly be looked at in order to determine the background and antecedent state of affairs which led to the legislation in question. But it cannot be resorted to in order to determine the true and correct meaning of words used in the statute. Much less can it be used to give an artificial meaning which the term does not ordinarily posses. 16. We are in respectful agreement with the detailed reasoning and conclusion arrived at b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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