Customs limitation under Section 28(9): extended adjudication time kept the proceedings alive and the challenge failed.

Section 28(9) of the Customs Act, 1962 permits the proper officer to determine duty or interest within the prescribed period, and the first proviso allows a senior officer to extend that period after expiry of the original time limit. The proceedings are deemed concluded only if no determination is made within the extended period. On the facts stated, the High Court accepted that the original period had expired but treated the extension granted on 07.05.2024 as keeping the adjudication alive, and also excluded the time spent before various forums from the limitation computation. The limitation challenge therefore failed, and the proceedings were held capable of continuation.

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Issues: Whether the proceedings initiated by the show cause notice could continue in view of the limitation prescribed under Section 28(9) of the Customs Act, 1962 and the extension granted by the Chief Commissioner under the first proviso to that provision.

Analysis: The show cause notice was issued under Section 28(4) of the Customs Act, 1962. The statutory scheme in Section 28(9) requires the proper officer to determine duty or interest within the prescribed period, with a further extension permissible by a senior officer under the first proviso, and only thereafter does the second proviso deem the proceeding concluded if no determination is made within the extended time. On the facts, the Court accepted that the initial period had expired, but held that the extension granted on 07.05.2024 kept the adjudication alive. The Court also treated the time consumed in proceedings before various forums as liable to be excluded for computation of limitation.

Conclusion: The challenge based on limitation failed and the proceedings were held to be capable of continuation; the appeal was dismissed.

Ratio Decidendi: Under Section 28(9) of the Customs Act, 1962, the adjudication period may be extended by a senior officer after expiry of the original period, and the proceeding is deemed to conclude only if no determination is made within the extended period.

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