2012 (8) TMI 1066 - HC - Customs

Summary

Issues Involved:
1. Seizure of goods and passport by Customs Authorities.
2. Non-issuance of show cause notice within six months.
3. Extension of the six-month period by the Commissioner of Customs.
4. Retention of the petitioner's passport by Customs Authorities.

Summary:

1. Seizure of Goods and Passport by Customs Authorities:
The petitioner, a permanent citizen of India, was intercepted by Customs Officers at Kolkata Airport on his return from Hong Kong via Dhaka. Upon searching his baggage, Customs Authorities seized 50 wrist-watches, 19 track pants, and an unbranded LED Video Processor u/s 110 of the Customs Act, 1962. The petitioner was subsequently arrested u/s 104 of the Customs Act.

2. Non-Issuance of Show Cause Notice within Six Months:
The petitioner argued that no show cause notice was issued within six months as mandated by Section 110(2) of the Customs Act, 1962, which necessitates the return of the seized goods if no notice is given within this period.

3. Extension of the Six-Month Period by the Commissioner of Customs:
The respondents contended that the six-month period was extended by the Commissioner of Customs by an order dated 19th April, 2012, communicated to the petitioner on 2nd May, 2012. The petitioner challenged the validity of this extension, suggesting it was backdated. However, the Court found no conclusive evidence to support this claim and observed that the extension was made to complete the investigation, as per the Supreme Court's guidelines in I.J. Rao, Assistant Collector of Customs v. Bibhuti Bhushan Bagh.

4. Retention of the Petitioner's Passport by Customs Authorities:
The petitioner contended that his passport was wrongfully retained by the Customs Authorities. The Court noted that the investigation was ongoing and declined to order the return of the passport at this stage. The Customs Authorities were advised to inform the Regional Passport Officer about the wrongful import for further action in accordance with the law.

Conclusion:
The Court directed the Commissioner of Customs to provide the petitioner a post-decisional hearing within 15 days of the order's communication. If no show cause notice is issued within the extended period, the goods must be returned. The writ application was disposed of with instructions for all parties to act on a signed photocopy of the order's operative part.