1962 (9) TMI 4

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..... nder Article 226. 2.The appeal arises out of an order made by the Additional Collector of Customs, Calcutta, dated June 15, 1959, by which he held the respondent Sitaram Agarwala to be guilty of an offence under Section 167(8) of the Sea Customs Act, hereinafter termed `the Act', and imposed a personal penalty on him of Rs. 60,000/-. The facts of the case are these. On August 25, 1958, the respondent Sitaram Agarwala carrying a sum of Rs. 49,320/- and accompanied by Bholanath Gupta went by an autobus from Harrison Road to Central Avenue. From there they boarded another autobus and alighted at Jatindra Mohan Park. They were seen waiting on Jatindra Mohan Avenue near Kali Temple. A little later a taxi came that way in which there was a Chine .....

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..... tions 23A and 23B of the Foreign Exchange Regulation Act. He showed cause and on June 26, 1959, the Additional Collector imposed a personal penalty of Rs. 60,000/- on Sitaram Agarwala to be deposited within three days and also held that on offence in respect of the currency notes seized from him had been established but that amount was retained until payment of the penalty. The gold found was also ordered to be confiscated in proceedings against Wong Chit Khaw but no offence was held proved against Bholanath Gupta. Sitaram Agarwala then filed a petition under Article 226 of the Constitution impeaching the legality of the order passed by the Additional Collector. G.K. Mitter, J., allowed the petition holding that Sitaram Agarwala is not a pe .....

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..... itaram Agarwala was carrying a large sum of money, that he gave a signal to the taxi in which smuggled gold was being brought, shook hands with the person in whose prossession that gold was and who was then arrested. The inference may be legitimately drawn that Sitaram Agarwala had arranged to buy the sumggled gold and further that arrangement would have been fruitful and he would have brought it if he had not been arrested. But the question still remains whether on the facts proved he could be held to be "concerned in" the importation of gold into this country. 4.Section 167(8) of the Act is a penal section the object of which is not only to prevent the evasion of the payment of duties but also to prevent smuggling of goods resulting in t .....

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