RANCHHODDAS ATMARAM vs THE UNION OF INDIA.

The Supreme Court held that under Item 8 of Section 167 of the Sea Customs Act, 1878, the Customs authorities can impose a penalty exceeding Rs. 1,000/- for the importation of prohibited goods, as the statute provides alternative penalties. The petitioner, who imported gold valued at Rs. 25,000/-, challenged a penalty of Rs. 5,000/-, arguing it exceeded the maximum limit; however, the Court upheld the penalty, clarifying that the authorities have discretion to choose between penalties. Previous decisions were distinguished as they did not address this specific issue.