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TMI Blog2025 (2) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... ction involved in the writ petition and appeal. It is an independent right acquired by the appellant authorities to be exercised independently.
The appellants are obliged to immediately return the goods to the respondent subject to the confiscation order. In other words, even if it is assumed that by virtue of confiscation, the ownership of the goods has been transferred to the appellants, still its possession status quo ante which was to be with the respondent has to be restored until the confiscation order is enforced.
Conclusion - The failure to serve a notice within the stipulated time requires the return of seized goods to the owner.
The appellants are directed to return the seized gold to the respondent within four weeks of communication of this order - appeal disposed off. X X X X Extracts X X X X X X X X Extracts X X X X ..... f Customs or Commissioner of Customs has the power to extend the period of six months by a further period not exceeding six months. 12. This power was not exercised by the concerned Principal Commissioner or Commissioner. 13. The words of Section 110 (2) of the Customs Act, 1962 are absolutely plain that if, no show cause notice is "given" within six months or within such extended time as provided in the first proviso not exceeding six months, the seized goods have to be returned to the person from whom they were seized. There is no power conferred on the Court to extend this period. This statutory period is strict and not relaxable at all. 14. In case of extraordinary circumstances in Manipur as stated by learned DSGI, the Principal Commissioner or Commissioner ought to have exercised his power to extend the time by six months but he did not do so. 15. Hence, only the contention of the appellant authorities is that an interpretation of the word "given" be made by us so that signing or issuance of the show cause notice on 3rd October, 2023 should be considered as "giving notice". In that case, it could be said that the show cause was "given" within six months and there is no ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our opinion, the notice given to five of the Councillors was of less than three clear days." 18. This dicta of the Supreme Court stopped by saying that by despatch of a notice "giving" was not complete. This view was relied upon and applied by the Gujarat High Court in a customs case in Ambalal Morarji Soni v. Union of India reported in AIR 1972 GUJ 126 to hold that "giving of notice" under Section 110 (2) meant service on the owner and not its issuance and despatch. The Court pronounced the following opinion: "17. The view expressed by the Supreme Court was followed as it should have been, by the Gujarat High Court in the case of Ambalal Morarji Soni (supra) while construing the very word "given" appearing in Sections 110 (2) and 124 (a) of the said Act. After referring to the Supreme Court decision in K. Narasimhiah (supra) the Division Bench of the Gujarat High Court observed as under:- "6. In our opinion, this decision of the Supreme Court clearly indicates that looking to the object for which the notice is to be given as provided in that particular piece of legislation, the Court has to consider whether the giving of the notice with the particular object in view is so m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the conclusion that "notice must be issued within the stipulated period". 26. For the above reasons, we do not agree with the view taken by the Calcutta High Court in Kanti Tarafdar (supra) which has been followed by some other High Courts. We find ourselves to be in entire agreement with the view taken by the Gujarat High Court in Ambalal Morarji Soni (supra) which has correctly placed reliance on the Supreme Court decision in K. Narasimhiah (supra). 27. Consequently, as none of the petitioners reviewed the notices under Section 124(a) of the said act within the time stipulated in Section 110 (2) thereof, the writ petitions are allowed and the respondents are directed to release the goods including the currency seized from the petitioners forthwith, unconditionally. There shall be no order as to costs." 20. Following and applying these authorities, it is plain that the meaning to be ascribed to the words "giving" notice under Section 110 (2) is nothing else than proper service of a notice under Section 124 of the Customs Act, 1962 physically or electronically on the owner of the goods containing the grounds on which it is issued and which he is required to answer. 21. N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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