1970 (10) TMI 29 - HC - Customs

Summary

Issues:
1. Extension of time for issuing show cause notice under Section 110 (2) of the Customs Act, 1962.
2. Whether the extension of time can be made by the Collector without hearing the person concerned.
3. Proper procedure for extension of time and satisfaction of the Collector regarding sufficient cause for extension.

Analysis:

Issue 1: Extension of time for issuing show cause notice under Section 110 (2) of the Customs Act, 1962

The petitioner contended that the notice should be served within six months from the date of seizure of goods, not from the date of despatch. The relevant provision allows the Collector to extend the period for issuing notice by up to six months on sufficient cause being shown. The notice in this case was sent by registered post within the prescribed time, satisfying the requirement of Section 110 (2).

Issue 2: Hearing requirement for extension of time by the Collector

The petitioner argued that any extension of time should only be made after hearing the person concerned, as it affects the vested right to have goods released if the notice is not issued within the stipulated period. Reference was made to a Calcutta High Court decision where it was held that the right to the return of goods is vested in the person after the expiry of the period. However, the court disagreed, stating that the extension must be made before the right accrues, and the power to extend time does not differentiate between before or after the expiry of the period.

Issue 3: Proper procedure for extension of time and satisfaction of the Collector

The petitioner further argued that there was no proper extension of time in this case, as there was no evidence that the Collector was satisfied with sufficient cause for the extension. The court disagreed, noting that the extension was made promptly after an omission or negligence in despatching the notice, ensuring the proceedings were not defeated. The court held that the extension was valid and dismissed the petition.

In conclusion, the court dismissed the Original Petition, ruling that the extension of time for issuing the show cause notice was valid and there was no requirement for the Collector to hear the person concerned before making the extension.