9911796707
TMI Blog1997 (10) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause against the proposed confiscation of the car has been issued by the Assistant Commissioner of Customs (Preventive) on 11-12-1995. It is addressed to (i) Shri Ganji Satya Narayana Dasu, (2) Shri Padamnabha Menon Rajaram, (3) Shri Surender Kumar Jain, (4) Shri Prakash Sharma, and (5) Shri Naresh Jain. The proceedings for confiscation and other adjudication proceedings under the Act are pending qua the above said five persons. However, so far as the petitioner Bimal Kumar Jain is concerned neither he has been served with any show cause notice till this day nor is he a party to the proceedings pending under the Customs Act. 4.According to the petitioner he is the sole proprietor of M/s. Jain Enterprises. In the name and style of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner made a representation to the Assistant Commissioner of Customs (Preventive). Copy of the representation is filed and marked as Annexure P 4. Therein the petitioner has set out his ownership of the car, his ignorance of the incident leading to the seizure and denial of the car having been involved in smuggling activities at any point of time. Representation was repeated on 2-4-1996. The petitioner had also filed documents showing the deposit by him from his personal account of the initial booking amount for purchase of the car, payment of consideration for the purchase of the car from his personal account, the petitioner having signed the invoice with the agent showing the petitioner to be the sole proprietor of M/s. Jain Enterprise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be found with the proceedings. 9.Having heard the learned Counsel for the parties, we are of the opinion that though the proceedings for confiscation may continue but the seized car is liable to be returned to the petitioner immediately and to satisfy the ends of justice the petitioner should also be afforded an opportunity of hearing by the respondents in the matter of proposed confiscation. 10.We may briefly refer to the relevant statutory provisions. Under sub-section (1) of Section 110, if the proper officer has reason to believe that any goods are liable to confiscation under the Customs Act he may seize such goods. Vide Clause (22) of Section 2 of the Act 'goods' includes vehicles. Vide Section 124, no order confiscating any g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is one who should have been served with a notice to show cause against the proposed confiscation. 12.If there is a failure to give the notice under Section 124 then, as already noticed, consequence statutorily provided by sub-section (2) of Section 110 is the return of the goods on lapse of six months period from the date of seizure of the goods. The proviso enacted to sub-section (2) of Section 110 provides for extension of six months' time by the Collector of Customs by another period not exceeding six months but only on sufficient cause being shown for such extension. 13. In J.K. Bardolia Mills v. M.L. Khunger, Dy. Collector, 1994 (72) E.L.T. 813 (S.C.). Their Lordships have held : "The effect of non-compliance of the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the possession of the car for the time being on behalf of the petitioner. As a period of six months has expired unextended and without the petitioner having been given a notice to show cause against, the car must be released to the petitioner awaiting the final out come of the confiscation and adjudication proceedings. As the respondents have failed to do so a writ of mandamus shall issue but taking care to protect the confiscation proceedings from being frustrated. 16.The petition is partly allowed. The respondents are directed to immediately release the car to the petitioner subject to his furnishing a bond before the Asstt. Collector of Customs (Preventive) in an amount equivalent to the price of the car to the following effect : th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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