Page 153 - ELT_15th May 2020_VOL 372_Part 4th

2020 ] OM SAI TRADING COMPANY v. UNION OF INDIA 543

Kewal Krishan v. State of Punjab — 1993 (67) E.L.T. 17 (S.C.) — Relied on .................................... [Para 22]
Mohinder Singh Gill v. Chief Election Commissioner — AIR 1978 SC 851 — Relied on .............. [Para 18]
S. Narayanappa v. Commissioner — AIR 1967 SC 523 — Relied on ................................................ [Para 26]
Salsar Transport Company v. Union of India — CWJC No. 3784 of 2013,
decided on 4-3-2013 by Patna High Court — Relied on ........................................................... [Para 38]
Sheo Nath Singh v. CIT — (1972) 3 SCC 234 — Relied on .................................................................. [Para 31]
Sundarjas Kanyalal Bhathija v. Collector — AIR 1990 SC 261 — Relied on ..................................... [Para 17]
Tata Chemicals Ltd. v. Commissioner — 2015 (320) E.L.T. 45 (S.C.) — Relied on .......................... [Para 20]
Union of India v. Salsar Transport Company — LPA No. 1186 of 2013,
decided on 25-11-2013 by Patna High Court — Relied on ............................................... [Paras 38, 48]
Union of India v. Salsar Transport Company — MJC No. 2185 of 2013,
decided on 24-7-2013 by Patna High Court — Relied on ................................................. [Paras 38, 48]
Yamuna Trading Company v. Union of India — CWJC No. 317 of 2012,
decided on 17-1-2013 by Patna High Court — Relied on ......................................................... [Para 38]
DEPARTMENTAL CLARIFICATIONS CITED
C.B.E. & C. Circular No. 3/2011-Cus., dated 6-1-2011 ............................................................... [Paras 40, 42]
C.B.E. & C. Circular No. 30/2017-Cus., dated 18-7-2017 ........................................................... [Paras 40, 47]
C.B.I. & C. Circular No. 35/2017-Cus., dated 16-8-2017 ............................................................ [Paras 40, 45]
FSSAI Circular dated 20-11-2018 ................................................................................................... [Paras 40, 46]
M.I.C Memorandum dated 4-6-2019 ..................................................................................................... [Para 40]
REPRESENTED BY : S/Shri Prabhat Ranjan and Chandan Kumar, Advo-
cates, for the Appellant.
S/Shri S.D. Sanjay, Addl. S.G., Anshuman Singh
and Mohit Agrawal, Advocates, for the Respondent.
[Judgment per : Sanjay Karol, CJ (CAV)]. - What is the meaning of the
expression ‘reason to believe’ and ‘liable to confiscation’ under Section 110 of the
Customs Act, 1962 (hereinafter referred to as ‘the Act’) is the question which we
are called upon to answer.
2. Section 2 of the Act dealing with the definition(s) does not define ei-
ther of the expressions ‘reason to believe’ and ‘liable to confiscation’.
3. Chapter XIII (Sections 100 to 110A) inter alia deals with the provi-
sions of search, seizure and arrest. Chapter XIV (Sections 111 to 127) deals with
the confiscation of goods and imposition of penalty. Section 111 throws some
light with regard to the nature of goods which are liable for confiscation.
4. Section 2(25) of the Act defines “imported goods” to mean any goods
brought into India from a place outside India but does not include goods cleared
for home consumption. Section 2(11) defines “customs area” to mean any area of
a customs station or a warehouse and includes any area in which imported
goods or export goods are ordinarily kept before clearance by Customs Authori-
ties and “smuggling” in relation to any goods as per sub-section (39) of Section 2
means an act or omission which will render such goods liable to confiscation un-
der Section 111 or Section 113.
5. Chapter IV of the Act empowers the Central Government to prohibit
importation and exportation of any goods and Chapters IV-A and IV-B deal with
the detection of illegally imported goods and prevention of the disposal thereof.
6. Section 111 defines the category of goods brought from a place out-
side India liable to be confiscated.
EXCISE LAW TIMES  15th May 2020  153