Interpretation of Notice Service in Customs Act: High Court ruling upholds timely notice sent by registered post

The High Court at Calcutta determined that the show cause notice was sent within the required six-month period as per Section 110(2) of the Customs Act, 1962. The court interpreted "given" in Section 110(2) to align with Section 153, meaning the notice is considered given when sent by registered post, not upon receipt. Emphasizing Section 153's control over notice service methods, the court dismissed the writ petition, allowing the show cause proceedings to proceed with proper hearing opportunities. The court's decision aimed to adhere to legislative intent for timely proceedings and prevent prolonged property deprivation.

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Issues Involved:
1. Whether the show cause notice was given within the stipulated six-month period as per Section 110(2) of the Customs Act, 1962.
2. Interpretation of the term "given" in Section 110(2) of the Customs Act, 1962.
3. Applicability of Section 153 of the Customs Act, 1962 in serving notices.

Summary:

Issue 1: Timeliness of Show Cause Notice
The writ petitioners claimed that the show cause notice was received after the expiry of six months from the date of seizure, thus violating Section 110(2) of the Customs Act, 1962. The High Court at Calcutta, however, found that the notice was posted within the six-month period, which satisfies the requirement of the law.

Issue 2: Interpretation of "Given" in Section 110(2)
The main contention revolved around the interpretation of the word "given" in Section 110(2). The appellants argued that "given" should be interpreted in line with Section 153 of the Act, which allows for service by registered post. The respondents contended that "given" should mean actual receipt by the addressee. The court concluded that "given" in Section 110(2) is controlled by Section 153, meaning that the notice is considered given when it is sent by registered post, not necessarily when it is received.

Issue 3: Applicability of Section 153
Section 153 of the Customs Act specifies the methods of serving notices, including tendering the notice or sending it by registered post. The court emphasized that Section 153 controls the manner of giving notice under Section 110(2). The court harmonized the provisions of the Act, concluding that the notice is deemed given when it is sent by registered post within the stipulated period, aligning with the legislative intent to expedite proceedings and avoid indefinite deprivation of property.

Conclusion:
The High Court set aside the order under appeal and dismissed the writ petition, affirming that the notice was sent by registered post within the six-month period from the date of seizure. The court directed that the show cause notice proceedings should continue with appropriate opportunities for hearing provided to the respondents/writ petitioners as per law. No order as to costs was made.

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