2021 (11) TMI 801 - HC - Customs

Period of limitation - Validity of assessment order - Extension of time limit in exercise of its power under the proviso to Section 110(2) of the Customs Act, 1962 - Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020 - HELD THAT - Notification G.S.R.601(E) F.No.450/61/2000-Cus.IV (Part-I) extending the time limit for completion or compliance of various action such as completion of any proceeding or issuance of any order, notice, intimation, notification or sanction or approval, by whatever name called, by any authority, commission, tribunal, by whatever name called, from 30.09.2020 to 31.12.2020. The above notification extending the time limit from 30.09.2020 to 31.12.2020 for various actions set out thereon has apparently not been brought to the notice of the learned Single Judge. The learned Single Judge has found that in view of the Ordinance 2020, the time limit prescribed under Section 110(2) of the Customs Act, 1962 would stand extended to 30.09.2020. However, as the subsequent notification has not been brought to the notice of the learned Single Judge, the learned Single Judge was prompted to hold that the impugned intimation extending the time limit under the proviso to Section 110(2) of the Customs Act, 1962 dated 30.09.2020 and receipt of the same by the respondent herein on 07.10.2020 was beyond the period stipulated in the proviso to Section 110(2) of the Customs Act,1962 and thus bad in law. The Central Government has now extended the date from 30.09.2020 to 31.12.2020 for completion or compliance of action such as completion of any proceeding or issuance of any order, notice, intimation, notification or sanction or approval, by whatever name called, by any authority, commission, tribunal, by whatever name called. In view of the above notification, the proceedings dated 30.09.2020 though served on 07.10.2020 is within the period extended by the Central Government vide notification G.S.R.601(E) F.No.450/61/2000-Cus.IV (Part-I) and thus valid. Appeal allowed.

Summary

Issues:
Validity of extending time limit under proviso to Section 110(2) of the Customs Act, 1962.

Detailed Analysis:

Issue 1:
The primary issue in this case is whether the action of the appellant in extending the time limit under the proviso to Section 110(2) of the Customs Act, 1962 is legally valid.

Analysis:
The respondent, engaged in import and export business, imported dry dates from a specific location but declared a different country of origin. Customs officials seized the goods, alleging misrepresentation of the origin country. The dispute revolved around the duty rates for imports from different countries. The respondent contested the seizure, claiming no violation of laws. The Customs Act, 1962 allows for the extension of the six-month seizure period under Section 110(2) by the Principal Commissioner of Customs or Commissioner of Customs, with reasons recorded in writing. The appellant issued an extension on 30.09.2020, received by the respondent on 07.10.2020.

Issue 2:
Whether the extension of time limit beyond the initial 90 days is valid under the Customs Act, 1962.

Analysis:
The respondent argued that the extension under Section 110(2) must be communicated within the initial 90 days, failing which the proceedings would be invalid. Despite extending the time limit to 05.03.2021, the intimation reached the respondent after the initial deadline, rendering the proceedings null and void. The outbreak of the Covid-19 pandemic led to the introduction of the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, extending timelines. The Single Judge's ruling highlighted the importance of timely intimation and reasons for extension, citing relevant legal precedents.

Issue 3:
Impact of subsequent notifications extending time limits on the validity of the proceedings.

Analysis:
The Central Government extended the deadline for various actions under the Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020, up to 31.12.2020. This extension was not initially considered by the Single Judge, who based the decision on the Ordinance 2020. The subsequent notification, not brought to the Single Judge's attention, influenced the High Court's decision on the validity of the extension granted under Section 110(2) of the Customs Act, 1962.

Conclusion:
The High Court allowed the writ appeal, considering the extension valid within the extended timeline provided by the Central Government. The Court did not delve into the academic question of the initial 90-day period for intimation due to the conclusive decision. The judgment emphasized the importance of complying with statutory timelines and notifications to ensure the legality of proceedings under the Customs Act, 1962.