2019 (5) TMI 1473 - HC - Customs

Unconditional release of goods - period of limitation for issue of notice - foreign currency - non compliance of Section 124(a) of the Customs Act, 1962 - HELD THAT - Section 124(a) of the Act contemplates for issue of show cause notice before confiscation of goods etc., Section 110 of the Act deals with seizure of goods, documents and things. Sub-Section(2) of Section 110 envisages that where any goods are seized under subsection (1) and no notice in respect thereof is given under clause (a) of Section 124 within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized. Modes for service of notice are provided under Section 153 of the Act. Clause (b) of Section 153(1) provides, by a registered post or speed post or courier with acknowledgement due, delivered to the person for whom it is issued or to his authorized representative, if any, at his last known place of business or residence. As per Clause(e), by affixing it in some conspicuous place at the last known place of business or residence of the person to whom it is issued and if such mode is not practicable for any reason, then, by affixing a copy thereof on the notice board of the office or uploading on the official website, if any; The notice was issued and the same was sent through speed post on 29.8.2018 but the same was returned unserved. No exception can be found with the issue and service of notice on the petitioner. It is also significant to note that the phrase given employed in sub-section(2) of Section 110 under clause (a) of Section 124 within six months of the seizure of the goods does not refer to service of notice. However, as aforesaid, there is sufficient service of notice as contemplated under Section 153 of the Act. Hence, the petitioner cannot raise any dispute relating to failure to issue show cause notice as contemplated under the Act. Petition disposed off.

Summary

Issues:
1. Refusal to grant unconditional release of foreign currency seized under Customs Act, 1962.
2. Compliance with Section 124(a) of the Act regarding issuance of show cause notice within six months of seizure.

Analysis:

Issue 1: Refusal to grant unconditional release of foreign currency seized
The petitioner, a resident of Uppala village, Kerala, was intercepted and arrested for carrying foreign currency equivalent to INR 21,18,000 in contravention of the Customs Act. The petitioner, a bonafide passenger with valid documents, claimed eligibility to carry the currency. The foreign currency was seized by the Additional Commissioner of Customs. The petitioner sought unconditional release, which was refused, leading to the writ petition.

Issue 2: Compliance with Section 124(a) of the Act
The petitioner argued that the show cause notice, a prerequisite under Section 124(a) of the Act, was not served within six months of seizure. The authorities claimed to have affixed the notice on the main gate of the petitioner's premises as per Section 153(1)(e) of the Act after the original notice was returned unserved. The Revenue contended that the notice was served in compliance with the Act, and the petitioner's objections could be raised before the adjudicating authority.

The Court noted that Section 124(a) requires a show cause notice before confiscation, while Section 110 deals with seizure of goods. The modes of service under Section 153 include registered post, speed post, or affixing at the last known place of residence. The notice, dispatched via speed post, was returned unserved, leading to affixation on the petitioner's residence as per Section 153(1)(e). The Court found the service of notice in compliance with the Act, allowing the adjudicating authority to consider the objections raised by the petitioner.

In conclusion, the Court disposed of the writ petition, directing the adjudicating authority to consider the petitioner's objections and make a decision within four weeks. The petitioner was granted the opportunity to present all grounds before the authority for a fair adjudication process.