9911796707
TMI Blog2020 (10) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... Petitioner under the provisions of the Customs Act, 1962. 3] It is stated that on 04.10.2019 Petitioner was travelling from Chennai to Mumbai by train via Mumbai Express. An Pune Railway Station, Railway Police seized six gold bars weighing 699.88 grams valued at Rs. 27,08,136.00 from the Petitioner. 4] On 05.10.2019 Petitioner was arrested by the Railway Police whereafter his custody was handed over to Respondent No.3. However, what followed thereafter or when the Petitioner was released from detention has not been mentioned. 5] Be that as it may, in pursuance to summons dated 06.03.2020 Petitioner appeared before Respondent No.3 on 16.03.2020. According to the Petitioner he made a categorical statement that he had not smuggled the six gold bars which were seized by the office of Respondent No.3. 6] On 26.03.2020 a notice was issued to the Petitioner by the office of Respondent No.3, whereby reference was made to the ongoing investigation in respect of seizure of gold bars from the possession of the Petitioner. It was mentioned that Commissioner of Customs, Pune being the competent authority had accorded sanction under the proviso to Section 110(2) of the Customs Act, 1962 (br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been made to the proviso to Section 110(2) of the Customs Act. It is stated that the said proviso was amended with effect from 29.03.2018. Prior to amendment, the proviso mentioned that the initial period of six months could be extended for a period not exceeding six months by the Principal Commissioner of Customs or Commissioner of Customs on sufficient cause being shown. After amendment, the proviso mentions that the Principal Commissioner of Customs or Commissioner of Customs may for reasons to be recorded in writing extend such period not exceeding six months and to inform the person from whom such goods were seized before expiry of the period so specified. It is stated that Respondents have complied with the conditions mentioned in the proviso to Section 110(2) of the Customs Act. 11.2] It is submitted that President of India had promulgated an Ordinance called the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance No.2 of 2020 dated 31.03.2020 extending the period of limitation provided for in various statutes from 20.03.2020 to 29.06.2020 to 30.06.2020, which was further extended to 30.09.2020 vide notification dated 27.06.2020. 11.3] Further it is me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed informing all the grounds on which confiscation is proposed. As per Sub Section (2) of Section 110, if no such notice is issued within six months of seizure, then the goods should be returned to the person from whose possession the goods were seized. Referring to the first proviso, he submits that though there is a provision for further extension of time limit for issuance of show-cause notice, such extension of time was granted by the higher authorities but within the extended period of six months no notice under Section 124(a) was issued. Therefore, on expiry of the extended period of six months, the Respondents are under legal obligation to return the seized goods to the Petitioner. Failure to do so is illegal. In this connection, learned counsel for the Petitioner has placed reliance on a decision of the Delhi High Court in Krampe Hydraulik (India) Vs. Union of India, (2003) ILR Delhi 73, decided on 30.07.2003. In the said judgment, Delhi High Court held that effect of not giving a notice within six months of the date of seizure would be that the seized goods are liable to be returned forthwith to the person from whose possession those were seized. Thus, such a person would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a case where order for provisional release of the seized goods has been passed under Section 110A. 17] Section 124 provides for issue of show-cause notice before confiscation of goods etc. It says that no order confiscating any goods or imposing any penalty on any person shall be made under this Act unless the owner of the goods or such person is given a notice in writing informing him of the grounds on which confiscation is proposed or penalty is sought to be imposed (clause a); providing an opportunity to make a representation responding to the grounds of confiscation or imposition of penalty (clause b); and providing a reasonable opportunity of being heard (clause c). The first proviso says that at the request of the person concerned the provision for notice and representation under clauses (a) and (b) may be oral. Second proviso mentions that the proper officer may issue a supplementary notice after the show-cause notice. 18] A conjoint reading of Sections 110(2) and 124 of the Customs Act would make it clear that a show-cause notice has to be issued to the person from whom the goods were seized within six months of seizure, failing which the goods shall be returned to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2020 to 29.06.2020 for the completion or compliance of such action as, completion of a proceeding or issuance of any order, notice, intimation etc. shall notwithstanding that completion or compliance of such action was not made within the aforesaid period, stood extended to 30.06.2020 or such other date as may be notified by the Central Government. The use of the word 'notwithstanding' clearly indicates that Section 6 of the Ordinance would have an over-riding effect over the provisions contained in the Customs Act except certain specific sections which does not include Section 110. 22] Respondents in their affidavit have mentioned in paragraph 7.4 that the date 30.06.2020 has been further extended to 29.09.2020 by notification dated 27.06.2020. 23] We had asked learned counsel for the Petitioner whether he would like to file rejoinder affidavit to the reply affidavit filed by the Respondents to which learned counsel for the Petitioner submitted that filing of rejoinder affidavit is not required. 24] From the above, we find that the extended period of limitation upto six months as per the first proviso to Sub Section (2) of Section 110 of the Customs Act stood extended by Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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