Retrospective customs limitation applies to pending show cause notices, causing lapse where adjudication is not completed in time.

Pending customs show cause notices issued before 29.03.2018 were treated as governed retrospectively by the amended limitation framework under the Customs Act. The amended sub-section (9) of Section 28 and substituted Explanation 4 required such notices to be adjudicated within the prescribed period counted from 29.03.2018, unless a lawful extension was obtained. Because the notice in question was not adjudicated within that period, it was held to have lapsed, and the consequential adjudication order could not survive.

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Issues: Whether the show cause notices issued on 07.10.2016 stood vacated under Explanation 4 to Section 28 of the Customs Act, 1962, in view of the amended limitation framework introduced from 29.03.2018.

Analysis: Explanation 4, as substituted, was treated as governing show cause notices issued prior to 29.03.2018, and the amended sub-section (9) of Section 28 was applied on a retroactive basis to pending notices. On that approach, a notice issued before the amendment was required to be adjudicated within the stipulated period counted from 29.03.2018, unless the period was lawfully extended. As the notice in question had not been adjudicated within that period, it was held to have lapsed.

Conclusion: The show cause notices were held to have stood vacated, and the consequential adjudication order could not survive.

Ratio Decidendi: A pending customs demand notice issued before 29.03.2018 is governed by the amended limitation regime on a retroactive basis, and if it is not adjudicated within the prescribed period without a valid extension, the proceeding stands concluded as if no notice had been issued.

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