Appeals Allowed, Writs Dismissed: Upholding Confiscation Order. Compliance Emphasized.

The appeals were allowed, overturning the single Judge's decision. Writ petitions were dismissed, upholding the order of confiscation, penalties, and prosecution sanction. The court affirmed the independence of Sections 110 and 124, emphasizing compliance with Section 124 requirements despite any Section 110 deficiencies. The Collector's actions were deemed valid within statutory bounds, with the right to appeal to the Central Board of Excise and Customs acknowledged for aggrieved parties.

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Issues Involved:
1. Validity of notice under Section 110 of the Customs Act.
2. Jurisdiction and legality of proceedings under Section 124 of the Customs Act.
3. Relationship between Sections 110 and 124 of the Customs Act.
4. Legality of the order of confiscation and imposition of penalties.
5. Validity of the sanction for prosecution under Section 135 of the Customs Act.

Detailed Analysis:

1. Validity of notice under Section 110 of the Customs Act:
The primary contention was that the notice under Section 110 of the Customs Act was not in accordance with law, rendering subsequent proceedings under Section 124 illegal and without jurisdiction. The watches were seized on 1-6-1969, and the notice extending the period was given on 4-11-1969, with a show cause notice issued on 1-5-1970. The court examined Section 110, which allows seizure of goods believed to be liable to confiscation and mandates returning the goods if no notice is given within six months, extendable to one year by the Collector of Customs.

2. Jurisdiction and legality of proceedings under Section 124 of the Customs Act:
Section 124 requires a notice in writing informing the owner of the grounds for confiscation or penalty, an opportunity for representation, and a hearing. The court found that Section 110 limits the power of seizure and retention of goods but does not affect the authority to proceed under Section 124. The court held that the Collector's extension and subsequent show cause notice were within the permissible period, and the failure to comply with Section 110 does not invalidate proceedings under Section 124.

3. Relationship between Sections 110 and 124 of the Customs Act:
The court clarified that Sections 110 and 124 are independent. Section 110 pertains to the seizure and retention of goods, while Section 124 deals with the procedure for confiscation and penalty. Compliance with Section 110 does not impact the validity of actions under Section 124, provided the conditions of Section 124 are met.

4. Legality of the order of confiscation and imposition of penalties:
The court upheld the Collector's order of confiscation and penalties, stating that the aggrieved parties have the right to appeal to the Central Board of Excise and Customs. The court rejected the argument that the order was erroneous or without jurisdiction, emphasizing that the proper forum for challenging the extension of time under Section 110 is the appeal process.

5. Validity of the sanction for prosecution under Section 135 of the Customs Act:
The court found no justification for interfering with the sanction for prosecution. Section 137 requires the Collector's sanction for prosecuting offenses under Sections 132 to 135. The court dismissed the argument that improper notice under Section 110 immunizes the owner from prosecution, affirming that Section 110 pertains only to seizure and detention, not to other powers under the Act.

Conclusion:
The appeals were allowed, and the judgment of the learned single Judge was set aside. The writ petitions were dismissed, and the court found no basis for quashing the order of confiscation, penalties, or the sanction for prosecution. The court emphasized the independence of Sections 110 and 124, the proper procedure for appeals, and the validity of the Collector's actions within the statutory framework.

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