2024 (4) TMI 1044 - AT - Customs

Provisional release of the goods allowed - SCN not issued within time limitation - seizure of goods under Section 110 (2) of the Customs Act, 1962 - HELD THAT - As per Section 110 (2), the adjudicating authority was required to issue show cause notice under section 124 of the Customs Act within six months of seizure. The period of six months may on sufficient cause being shown can be extended for another period of six months, but in this case, neither any show cause notice has been issued to the appellant under section 124 of the Act nor the period for issuance of the show cause notice has been extended till date. Admittedly the goods have been seized on 22.09.2023 and presently it is 19.04.2024. As the provision of section 110(2) of the Customs Act has not been complied with, therefore, the goods in question are to be released to the appellant immediately - the adjudicating authority is directed to do so. The goods in question are to be released to the appellant immediately without any condition for provisional release - Appeal disposed off.

Summary

Issues Involved:
The judgment involves the issue of provisional release of goods under Section 110A of the Customs Act, 1962 and the compliance with Section 110(2) for issuance of show cause notice within a specified period.

Provisional Release of Goods:
The appellant imported Cutting Wheel consignments and faced denial of clearance based on an alert notice and subsequent investigation alleging undervaluation. The appellant sought provisional release of seized goods under Section 110A, subject to conditions including execution of a bond for the estimated value and submission of a bank guarantee. The Ld. Commissioner(Appeals) found the challenge premature and rejected the appeal. The appellant contended that no show cause notice was issued within six months of seizure, as required by Section 110(2).

Compliance with Section 110(2):
The appellant argued for release of goods based on non-compliance with Section 110(2) of the Customs Act, 1962, which mandates issuance of a show cause notice within six months of seizure. The appellant highlighted that no notice was issued within the stipulated period, nor was an extension granted. The Tribunal concurred that the goods must be released immediately due to the failure to adhere to the statutory requirement of issuing a show cause notice within the specified timeframe.

Conclusion:
The Tribunal directed the adjudicating authority to release the goods to the appellant without any conditions for provisional release, emphasizing the necessity of compliance with statutory provisions such as Section 110(2) of the Customs Act, 1962. The appeal was disposed of in favor of the appellant, emphasizing the importance of procedural compliance in customs matters.