PURUSHOTTAM JAJODIA Vs. DIRECTORATE OF REVENUE INTELLIGENCE

JUDGEMENT

(1.) These three writ petitions raise a common issue with regard to the meaning to be ascribed to the word "given" appearing in Section 110(2) of the Customs Act, 1962 (hereinafter referred to as =the said Act') and in Section 124(a) of the said Act. This pertains to the giving of a notice under Section 124(a) of the said Act informing a person from whom goods have been seized of the grounds on which it is proposed to confiscate the goods or to impose a penalty. Section 110(2) of the said Act prescribes that the upper time limit for retaining the seized goods is of six months, in case no notice in respect thereof is given under Clause (a) of Section 124 of the said Act, from the date the seizure of the goods. Moreover, in case no such notice is given, the goods are mandatorily required to be returned to the person from whose possession they were seized. Of course, the period of six months may, on sufficient cause being shown by the Commissioner of Customs, be extended for a further period not exceeding six months. This is stipulated in the proviso to Section 110(2) of the said Act.

(2.) The facts in each of these writ petitions need to be set out briefly in order to appreciate the context in which the said expression is to be considered.

(3.) In W.P.(C) 416/2014 (Purushottam Jajodia vs. Directorate of Revenue Intelligence & Anr.) the seizure of goods took place on 29.10.2012. The period of six months prescribed under Section 110(2) would expire on 28.04.2013. However, the Commissioner of Customs invoked the proviso and extended the period by an order-in-original dated 26.04.2013 by a further six months. Although the order-in-original mentions that the period was extended up to 08.10.2013 for issuance of a show cause notice, in view of the fact that the order expressly records that the period is extended by six months, we are treating the date given in the said order i.e., 08.10.2013 to be read as 28.10.2013. In other words, the notice under Section 124(a) had to be given on or before 28.10.2013. The show cause notice was dated 28.10.2013. It was sent by speed post to the petitioner and the tracking record indicates that the postal item was booked on 29.10.2013 and actually received by the petitioner on 30.10.2013. It is the case of the petitioner that signing of the show cause notice on 28.10.2013 was not sufficient compliance and that the same should have been received on or before 28.10.2013. It was further submitted that the notice was itself posted on 29.10.2013 which was, in any event, beyond the terminal date of 28.10.2013.