1984 (9) TMI 65 - HC - Customs

Summary

Issues Involved:
1. Importation of the car without a valid licence or customs clearance permit.
2. Application of Section 125 of the Customs Act, 1962 regarding the option to pay a fine in lieu of confiscation.
3. Adjudication process and the role of the Collector of Customs.
4. Consistency in the application of customs laws and precedents.
5. Allegations of bias and influence from the Central Board of Excise and Customs.

Issue-wise Detailed Analysis:

1. Importation of the car without a valid licence or customs clearance permit:
The petitioner imported a Toyota Corona car as a gift from his father, a non-resident Indian residing in Japan. The car arrived in India without the necessary import licence or customs clearance permit, leading to a show cause notice for confiscation under Section 111(d) of the Customs Act, 1962, read with Section 3(2) of the Imports and Exports (Control) Act, 1947.

2. Application of Section 125 of the Customs Act, 1962 regarding the option to pay a fine in lieu of confiscation:
The petitioner argued that even if the importation contravened the Imports (Control) Order, 1955, he should be allowed to pay a fine under Section 125 of the Customs Act, 1962, in lieu of confiscation. Section 125 provides that the adjudicating officer may give the owner of the goods an option to pay a fine instead of confiscation. The petitioner cited instances where similar cases were resolved by allowing importers to pay a fine and clear the cars.

3. Adjudication process and the role of the Collector of Customs:
The Collector of Customs confiscated the car absolutely, citing public interest and economic reasons. The Collector argued that allowing the importation of luxury items like air-conditioned cars would be against the economic interest of the country. The petitioner challenged this decision, alleging that the Collector's discretion was influenced by instructions from the Central Board of Excise and Customs, which directed not to give an option for release of imported cars on payment of redemption fine.

4. Consistency in the application of customs laws and precedents:
The petitioner highlighted several cases where imported cars were released upon payment of a fine. The court noted that the customs authorities had previously allowed the release of imported cars upon payment of fines in similar circumstances. The court emphasized that the authorities should not act differently in identical situations and should follow their precedents unless there are compelling reasons to depart from them.

5. Allegations of bias and influence from the Central Board of Excise and Customs:
The court found that the Collector of Customs did not exercise his discretion independently and was influenced by the instructions from the Central Board of Excise and Customs. The court held that the discretion vested in the adjudicating officer is a quasi-judicial function and cannot be controlled by external instructions. The court also noted that the Collector's reasoning was based on assumptions and irrelevant considerations.

Judgment:
The court set aside the order of the Collector of Customs dated 30th August 1984 and directed him to pass a fresh order allowing the petitioner the option to release the car on payment of redemption fine. The Collector was instructed to impose a fine consistent with similar cases and determine the quantum of fine within three days from the communication of the order. The car was to be released within three days from the payment of the assessed duty and redemption fine. The prayer for stay was refused.