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2017 (5) TMI 1747 - HC - CustomsSmuggling - illegal sale of Goat Skin - absolute confiscation - penalty - presence of “reasonable belief” and the “reason for formation of such belief” - It was contended that there was an error apparent on the face of Annexure-5 as the same officer while noting that the goods are highly perishable in nature was directing the petitioner to deposit 100% cash security but also at the same time, asking him to execute a bond - HELD THAT:- The contention of the petitioner that the goods were not notified goods form the basis of his challenge to the action of the respondents. This Court had issued a specific query to the Customs authorities to justify as to whether the goods, so seized by its authorities, were specified goods and had been seized from specified routes. The counter-affidavit filed by the respondents does not, in any way, substantiate this fact and a perusal of the adjudicatory order indicates that it was seized from the godown. There is also no satisfaction expressed by the authorities at the time of seizure that they had “reason to believe” that the goods so seized were liable for confiscation. Thus, the very initiation of the proceedings against the petitioner seems to be without jurisdiction. Penalty - HELD THAT:- The petitioner has categorically submitted that he could not be forced to participate in the proceedings, which was without jurisdiction and was liable to be refunded the amount, which was the cost of his goods, which had been taken in hot haste by the authority without following the due process of law - imposition of a penalty after confiscation of the Goat Skins, which had been illegally auction sold by the authorities, could not be sustained as by no stretch of imagination the same authority, who issued the show cause notice, proceed to pass the final orders, in the present case. Such action clearly reveals the mechanical manner in which the authorities have been functioning and is indicative of the non-application of mind and also is deemed to be vested with ulterior motives. The entire proceedings against the petitioner having been conducted in gross violation of the statutory provisions of the Act stands vitiated, more so because the petitioner has been subjected not only to irreparable loss and injury but has also been denied the basic principle of audi alteram partem, leading to much harassment and injury by the illegal acts of the respondents. This Court, considering the facts that the whole proceedings against the petitioner stands vitiated as being without jurisdiction, also allows the prayer of the petitioner for refund of ₹ 1,21,620/-, being the price of 2027 pieces of Goat Skins, which has been illegally sold by the respondent-authorities - Application allowed.
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