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TMI Blog2018 (9) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... were resorted to within the six month period. Even that option was not exercised. The petitioner is, therefore, clearly entitled to release of all the articles in her locker as well as the locker key. Since the customs authorities have inventorized these goods, it is open for them to continue with the adjudication proceedings as and when they issue show cause notice - petition allowed. - W.P.(C) 9089/2017 - - - Dated:- 28-8-2018 - MR. S. RAVINDRA BHAT AND MR. A. K. CHAWLA JJ. Petitioner Through: Mr. Piyush Kumar, Ms. Vidushi Shubham Ms. Reena Rawat, Advs. Respondents Through: Mr. Vinod Diwakar, CGSC with Mr. Sanjay Pal, Adv. for R-1,2/UOI. S. RAVINDRA BHAT, J. (ORAL) 1. The petitioner s grievance is that pursuant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ja Vs. UOI wherein the effect of Section 110 and obligation of the revenue to ensure that a show cause notice under Section 124 is issued within a stipulated time was explained. The Court cited the judgment in Asstt. Collector Of Customs vs Charan Das Malhotra 1972 AIR 689; J.K. Bardolia Mills vs M.L. Khunger,Dy.Collector (1994) 5 SCC 332 and also analyzed the provisions of Section 110 as well as Section 110A. It considered the judgment of the Bombay High Court Jayant Hansraj Shah v Union of India 2009 (1) Bom CR 474 which was relied upon by the Revenue. The Court held as follows: 9. It can be gathered from the above discussion that the provision of Section 110 (2) in so far as the prescription of a time limit for holding seized goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng given under Clause (a) of Section 124 within six months of the seizure or confiscation of the goods. The procedure for confiscation of the goods can be resorted to if the goods are not provisionally released. If the owner in terms of Section 110-A applies for provisional release and an order is passed it can be said that the goods continue to be under seizure as the order under Section 110-A is a quasi judicial order. Section 110(2) would not be operative. It is only in the case where no provisional order is passed for release of the seized goods and if no notice is issued under Section 124(a) for confiscation of the goods then only would Section 110(2) apply and the respondent would be bound to release the goods. Any other reading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were seized. The Bombay view, expressed in Jayant Hansraj Shah cannot be divorced from its context, and any effort to say that release under Section 110A would extinguish the operation of the consequence (of not issuing show cause notice, within the statutory period) spelt out in Section 110 (2) would be contrary to the plain meaning and intendment of the statute. This is because Section 110-A is by way of an interim order, enabling release of goods, (for instance, where they are fast moving, or perishable). The existence of such power does not in any way impede or limit the operation of the mandatory provision of Section 110 (2), particularly the time limit for issuance of show cause notice, in so far as it relates to the consequence of st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of seizure, are to be released unconditionally. There is nothing in Section 110-A to detract from this consequence. The public interest in injecting a sense of efficiency by mandating an outer limit to seizure orders, whenever the customs authorities contemplate an adjudication proceeding, is self-evident. But for the prescription of such an outer limit, Customs authorities would be entitled to claim and keep all manner of goods and valuables indefinitely, without any semblance of adjudication or even the preliminary step towards adjudication in the form of a show cause notice. In the case of goods with limited shelf life, or fast moving electronic articles, or even garments, which reflect the latest trends, even such limited seizure m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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