TMI Blog1962 (6) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... of this search, 135 foreign made wrist watches of different types and sizes were found from a steel almirah and an iron safe. Thereafter a written statement was filed by the petitioner Sri Narendra Chandra Das on the 26th September, 1959 in which he stated that he purchased the watches from different places in the Indian Union as he was carrying on the business of selling watches. He promised to reproduce later on the vouchers under which the purchases were made. Thereafter notice was issued to the petitioner to show cause why action should not be taken against him under the Land Customs Act, the Sea Customs Act and section 3(1) of the Imports and Exports (Control) Act, 1947. The show cause notice was issued on the 6th October, 1959 by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he back of the petitioner it was found that 5 bills produced by the petitioner covering 71 seized watches did not appear to be genuine. It was found that the watches in respect of which the invoices were produced were denied to have been sold by the supplying firms and in respect of cash memos it was found that the supplying firms were not existing at the recorded address. After considering the evidence gathered by the Department behind the back of the petitioner the Collector came to the conclusion that out of the watches seized from his possession, 71 watches were not obtained by him in the usual and ordinary course of business, as claimed by him. About the rest 64 watches the finding was that the petitioner has succeeded in proving that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that these goods were obtained without a proper permit. This proposition cannot be disputed and has not rightly been disputed by the Government Advocate before us. 3.The only question is whether in the adjudication proceedings the Collector violated any principles of natural justice. It is clear that the evidence recorded by the Collector or the inquiry made by the Department behind the back of the petitioner has been relied upon by Department in coming to the conclusion that the petitioner has failed to prove bona fide purchase of 71 watches. The petitioner thus had no opportunity to test the material which has been relied upon against him. Merely because an inquiry was made from the persons from whom the petitioner discloses that the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicial and quasi-judicial bodies is that a party should not be condemned unheard, that he should know what the charge against him is, that he should be heard in his defence, that he should be given an opportunity to lead evidence and he should also be given an opportunity to test the materials which are before the adjudicating authority. If there is a departure from any of these requirements, then undoubtedly the Court would say that a proper opportunity was not given to the party to defend himself or to show cause against the charge made." Applying the test laid down above in our opinion there has been a violation of the essential requirement that the party should be given an opportunity to test the materials which were before the adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atement of these persons. The only thing which the petitioner did was to file the vouchers in support of his contention that he made purchases in the open market. If any inquiry was made secretly it was an essential requirement of the principal of natural justice that the witnesses examined in a secret inquiry should have been produced for the purposes of cross-examination or the officer who made the inquiry should have been produced before the collector, so that the material collected could have been tested by the petitioner. 6.It is also difficult to accept the contention that merely because the petitioner has failed to prove the particular purchase, the necessary inference can be drawn that the goods were brought into India without a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Customs officer must proceed according to the general principles, which are not necessarily legal principles, for the purpose of arriving at a conclusion. The following observation at page 31 of the report may be quoted: —"It is obvious from the record in this case that the plaintiff had ample opportunity to correct or contradict any statement prejudicial to his view which had been recorded". In our opinion therefore, the application should be allowed and a writ of certiorari should be issued quashing the order of the Collector of Customs dated the 7th March, 1962. The rule is made absolute but in the circumstances of the case the parties will bear their own costs. 8.Civil Rule No. 182/62 arises out of the search made on the 16th Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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