ADDL. COLLECTOR OF CUSTOMS, CALCUTTA & ORS. vs BEST & COMPANY

The Supreme Court held that under Section 5 of the Imports & Exports (Control) Act, 1947, authorities may prosecute for breach of a licence condition, but cannot order confiscation of goods or impose penalties in lieu of confiscation. The Court clarified that confiscation can only occur under Section 167(8) of the Sea Customs Act, 1878, which governs prohibited or restricted imports. The appeal by the Collector of Customs was dismissed, affirming the Division Bench's ruling that the penalties imposed were not valid under the cited provisions.