Case: Becker Gray &amp; Company (1930) Ltd. &amp; Others Vs. Union of India &amp; Others

1. The appellants in these appeals were exporters of Jute Carpet Backing Cloth and, in connection with some exports by them between the period January 1957 to January 1963, penalties have been imposed on them under Sec. 167 (8) of the Sea Customs Act for contravention of Section 12 (1) of the Foreign Exchange Regulation Act No 7 of 1947 (hereinafter referred to as "the Act") in view of the provisions of Section 23A of the Act and Section 19 of the Sea Customs Act by the Adjudicating Officer. Their appeals to the Central Board of Excise and Customs (hereinafter referred to as "the Board") were dismissed, though the amounts of penalties imposed were reduced. The order of the Board dismissing the appeals has been challenged in these appeals before us by special leave.

Court's reasoning:
The finding recorded by the Board, no doubt, shows that the declarations required to be made under the Rules in Form G.G.I. contained incorrect information; but that incorrect information related to points on which Sec. 12 (1) does not require a declaration. A declaration, which is in contravention of the Rules or the Forms prescribed under the Rules, may be penalised under Section 23 of the Act, but such contravention will not attract the provisions of the Sea Customs Act. Under Sec. 23A of the Act, only a breach of restrictions imposed by Sec. 12 (1) of the Act is to be deemed in contravention of restrictions imposed by Sec. 19 of the Sea Customs Act. An incorrect declaration in contravention of the Rules made under Sec. 27 of the Act is not to be deemed a contravention of any restriction imposed by Sec. 19 of the Sea Customs Act. It is, therefore, quite clear that, in these cases, the imposition of the penalties under Section 167 (8) of the Sea Customs Act was totally unjustified.