2013 (11) TMI 36 - HC - Customs

Cash Seizure - Deferment of release of cash seized by seizure memo - Held that - unable to appreciate as to why the petitioner did not seek for release of cash in the writ petition filed earlier and as to why he has taken six years time to make an application for release of cash and has relied upon the provisions which are not attracted in the case - Commissioner of Central Excise, Meerut has not rejected the application for release of cash. He has only deferred the application until the adjudication is complete - petitioner had not filed the reply to the show cause notice for last five years, we do not propose to interfere in the matter - Decided against assessee.

Issues:
1. Application for release of seized cash deferred until adjudication.
2. Consideration of powers vested in the Commissioner of Central Excise under Section 110-A of the Customs Act, 1962.
3. Previous Writ Petition for return of documents.
4. Compliance with principles of natural justice and fair play.
5. Applicability of Section 110A of the Customs Act, 1962 for release of seized goods.
6. Delay in filing reply to show cause notice.
7. Failure to seek release of cash in earlier writ petition.
8. Reference to Supreme Court judgment.
9. Deferral of application for release of cash by the Commissioner of Central Excise.
10. Non-appearance before the Adjudicating Authority.
11. Dismissal of the writ petition.

Analysis:

1. The petitioner's application for the release of seized cash was deferred by the Central Excise Authorities until the adjudication of the case, based on the related provisions. The petitioner argued that the order did not consider the powers vested in the Commissioner of Central Excise under Section 110-A of the Customs Act, 1962, applicable to seizures made under the Central Excise Act, 1944.

2. Previously, the petitioner had filed a Writ Petition concerning the return of documents, which was allowed. The court held that witnesses whose statements were relied upon must be made available for cross-examination if their statements were considered as evidence, emphasizing the importance of natural justice and fair play.

3. The respondents contended that Section 110A of the Customs Act, 1962 was not applicable for the release of seized goods under Section 110 by the Central Excise Authorities, citing notifications issued under Section 12 of the Central Excise Act, 1944. They argued that the application for cash release had only been deferred, not dismissed.

4. The court noted the delay in filing a reply to a show cause notice issued in 2008 and questioned why the petitioner had not sought cash release earlier, taking six years to make the application and relying on provisions not relevant to the case.

5. Referring to a Supreme Court judgment, the court highlighted the distinction between cases under the Customs Act and the Excise Act, emphasizing the need for accurate legal application.

6. Despite the Commissioner of Central Excise deferring the cash release application until adjudication, the court declined to interfere due to the petitioner's failure to file a reply to the show cause notice for five years and non-appearance before the Adjudicating Authority on multiple dates.

7. Ultimately, the writ petition was dismissed, indicating a lack of compliance and procedural delays on the petitioner's part, leading to an unfavorable outcome in the legal proceedings.

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