A two-judge bench of the Gujarat High Court, while quashing an order for confiscation by the customs department, held that the order is not sustainable under the law since the show cause notice was issued beyond the statutory limit.
The petitioner is engaged in the business of textile trading and export. During a search proceeding, the department seized cash amount of Rs.35,99,000/- belonging to the petitioner and his family members and two mobile phones also were seized by the officers a show cause notice was issued accordingly. After approximately 19 months, the department issued another show cause notice in respect of the alleged illegal export by one M/s.Amira Impex in connivance of number of other persons which included the petitioner. The goods were later proposed to be confiscated.
The bench comprising Justice Sonia Gokani and Justice Hemant M Prachak noticed that the period prescribed under the law has already lapsed long before the show cause notice has been issued, this Court needs to intervene for this being a clear violation of statutory provisions of section 110 and other provisions of Customs Act, these items are required to be returned to the petitioner.
While concluding in favour of the petitioner, the bench held that “the Court notices that nothing has been explained in the entire reply of 27 paragraphs with regard to the non-compliance of the statutory mandate under Section 110(1)(2) read with Section 124 of the Act. It is quite unfathomable as to why the time limit is not adhered to and issuance of the show cause notice has been delayed beyond the statutory time period and hence, intervention will be necessary at the end of this Court by keeping open the rights of the respondents to initiate adjudication process afresh in accordance with law.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
