Gold jewelleries must be returned as Show Cause Notice under section 124 exceeded six-month limit under section 110(2)

Manipur HC held that gold jewelleries seized on 23-02-2024 must be returned to petitioners as the Show Cause Notice under section 124 of Customs Act was dispatched only on 25-08-2023, beyond the six-month period prescribed under section 110(2). The court ruled that retention of seized goods beyond the statutory time limit is illegal and violates Customs Act provisions. Consequently, the writ petition was allowed directing customs officials to immediately release the seized gold jewelleries to the petitioners.

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Issues:
1. Seizure of gold jewelleries under Customs Act, 1962.
2. Delay in issuing Show Cause Notice (SCN) within the prescribed period.
3. Legal rights of petitioners under section 110 (2) of the Customs Act.
4. Jurisdiction of the court in ordering the release of seized goods.
5. Maintainability of the writ petition without resorting to statutory appeal provisions.

Analysis:

The petitioners filed a writ petition seeking a writ of Mandamus to direct the return of gold jewelleries seized by Customs officials under section 110 of the Customs Act, 1962. The jewelleries were seized during a security check at Imphal International Airport. A Show Cause Notice (SCN) was issued after six months, leading to the petitioners' request for release, which was denied. The petitioners argued that the failure to return the jewelleries violated their rights under section 110 (2) of the Act and their Fundamental Right to Equality under Article 14 of the Constitution of India.

The respondents contended that the delay in issuing the SCN was due to procedural issues and external factors like technical glitches and curfew. They also raised objections to the writ petition's maintainability, citing the availability of statutory appeal options under the Customs Act.

The court considered the provisions of sections 110, 124, and 153 of the Customs Act. It noted that the SCN should have been issued within six months of the seizure under section 110 (2) and that failure to do so would require the return of the seized goods to the owner. As the SCN was dispatched after the prescribed period, the court held the retention of jewelleries by Customs officials illegal.

Regarding the maintainability of the writ petition, the court ruled that since no confiscation order or penalty had been imposed, there was no need for a statutory appeal. Thus, the objection raised by the respondents was dismissed, and the court directed the immediate release of the seized gold jewelleries to the petitioners. The writ petition was allowed, and no costs were imposed on either party.

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