ASSISTANT COLLECTOR OFCUSTOMS (PREVENTIVE) BOMBAY vs BABU MIYA SHEIKH IMAM AND ORS. ETC.

The Supreme Court held that Section 135(1)(a)(ii) of the Customs Act, 1962, encompasses fraudulent evasion of prohibitions irrespective of whether duty is chargeable on the goods. The Court clarified that the prohibition imposed under the Export Trade Control Order, 1968, regarding the export of silver without a license falls under the third part of Section 135(1)(a)(ii). Consequently, the High Court's decision to set aside the conviction was overturned, affirming the prosecution's case against the accused for their involvement in the fraudulent evasion of the prohibition.