Statutory time limit for show cause notice bars continued detention of seized goods without valid extension.

Continued detention of seized gold bangles was impermissible where no show cause notice was issued within the statutory period under the Customs Act and no valid extension was obtained. The six-month time limit for notice after seizure could be extended only in compliance with the prescribed formalities, and the absence of a timely notice, together with no appraisement having been carried out, meant the detention could not be sustained. The goods were directed to be appraised and released subject to verification.

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Issues: Whether the detained gold bangles were liable to be released when no show cause notice was issued within the statutory period under the Customs Act, 1962.

Analysis: The goods had remained detained for more than one year, while the statutory period for issuance of a show cause notice under Section 110 of the Customs Act, 1962 is six months, extendable only on compliance with the prescribed formalities. The Respondent accepted that no show cause notice had been issued within the stipulated period and that no appraisement had been carried out. In these circumstances, continued detention of the goods was held to be impermissible.

Conclusion: The goods were directed to be appraised and released to the Petitioner within four weeks, subject to verification, and the detention could not be sustained.

Ratio Decidendi: Where the statutory period for issuance of a show cause notice after seizure has expired without valid extension, continued detention of the goods is impermissible and release must follow subject to verification.

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