NARENDRA M MEHTA Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) These petitions are before us on a reference made by a learned single Judge of this Court. The learned single Judge after hearing the matter at length, considering a number of cases decided on the character and nature of proceedings under Section 110(2) of the Customs Act, 1962 (hereinafter referred to as the 'Act') came to the conclusion that the views expressed by the various High Courts including our own High Court were at variance with each other and as such the question was required to be decided by a Division Bench of this Court and made the ref- erence. The qaestion formulated by the learned single Judge is as follows:

(2.) We may at the out set, before proceeding to deal with the writ petitions mention that Puttaswamy, J., as he then was in W.P. Nos. 4614 to 4616/1978 disposed of on 13th June, 1984, did no more than hold that proceedings under Chapter XIV of the Act did not depend upon the proceedings initiated or concluded under Chapter XIII of the Act. That conclusion must be held to have been reached on the facts of those cases and not as a general proposition of law.

(3.) After hearing the learned Counsel and on going through the records of the case, we are of the view that the question posed for decision by the Division Bench does not at all arise in the facts and circumstances of these cases. We propose to state the undisputed facts briefly and they are as follows. The petitioners are exporters of textiles. They carry on business, admittedly, at Bombay. On 3-4-1984 the officers of the Air Cargo complex attached to the Customs Authorities, Bangalore, raided two places in Bangalore and found 357 pieces of silk sarees in 8 cartons and in 14 other cartons, grey cotton long cloth and colour cloth; totally valued at Rs. 91,175-06 which were seized under a deed of mahazar of even date. Thereafter, the Collector of Customs, Bangalore-1st respondent herein issued notice dated 17-9-1984 under subsection (2) of Section 110 of the Act calling upon the petitioners to show why the time of six months given to the Revenue to commence proceedings for adjudication as a prelude to confiscation or release of the seized goods for violation of the terms and conditions of the licence issued under the Act or violation of any of the provisions of the Act or the Rules made thereunder. The operative portion of the show cause notice reads as follows: