Page 46 - ELT_1st June 2020_VOL 372_Part 5th

A170 EXCISE LAW TIMES [ Vol. 372

“Statutes are in pari materia which relate to the same person or thing,
or to the same class of persons or things. The word par must not be con-
founded with the word simlis. It is used in opposition to it - intimating not
likeness merely but identity. It is a phrase applicable to public statutes or
general laws made at different times and in reference to the same subject.”
From the perusal of above explication, it becomes clear that Sections 124 and 125
of the Customs Act, 1962 are in pari materia to Section 130 of the CGST Act, 2017
as they refer to same class of persons, i.e. persons whose goods is/are liable to be
confiscated (under Customs Act, 1962 or under CGST Act, 2017, as the case may
be).
Therefore, all judicial precedents made in the context of Sections 124 and
125 of the Customs Act, 1962, shall naturally be applicable to cases stemming
from Section 130 of the CGST Act, 2017. This point further gets reinforced by the
following observation made by Lord Mansfield in the case of R v. Loxdale, (1758)
1 Burr. 445, wherein he observed :
“Where there are different statutes in pari material though made at different
times, or even expired and not referring to each other, they shall be taken and
construed together, as one system, and as explanatory of each other”
Redemption Fine and Show Cause Notice
As has already been discussed, the option of ‘Redemption Fine’ is given
to the owner of the goods only after ascertainment by the proper officer of the
Department of the fact that goods are liable for confiscation. It may be pointed
out that order of confiscation can be passed only when the goods proposed to be
confiscated are found to be ‘liable to confiscation’ under Sections 111, 113, 118,
119 and120 of the Customs Act, 1962, or under Section 130(1) of the CGST Act,
2017.
Here, it must be borne in mind that before confiscating such goods or
passing any order for confiscation of such goods, concerned Proper Officer has to
fulfil certain obligations as stipulated in Section 124 of the Customs Act, 1962,
and Section 130(4) of the CGST Act, 2017.
For the sake of convenience, Section 124 of the Customs Act, 1962, and
Section 130(4) of the CGST Act, 2017, have been reproduced below :

Section 124 of the Customs Act, 1962
“SECTION 124. Issue of show cause notice before confiscation of goods,
etc. - No order confiscating any goods or imposing any penalty on any person
shall be made under this Chapter unless the owner of the goods or such
person -
(a) is given a notice in writing with the prior approval of the officer of Cus-
toms not below the rank of an Assistant Commissioner of Customs, inform-
ing him of the grounds on which it is proposed to confiscate the goods or to
impose a penalty;
(b) is given an opportunity of making a representation in writing within such
reasonable time as may be specified in the notice against the grounds of con-
fiscation or imposition of penalty mentioned therein; and
(c) is given a reasonable opportunity of being heard in the matter :
Provided that the notice referred to in clause (a) and the representation re-
ferred to in clause (b) may, at the request of the person concerned be oral.”
[Emphasis supplied]
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