Showcause notice time bar and burden of proving service under the sixmonth rule remanded to adjudicating authority; possible return of goods

Showcause notice time bar under the statutory sixmonth limitation and the department's burden to prove valid service are central. The judge held the service by email is disputed and remanded the matter to the Adjudicating Authority so the petitioner can establish that the notice was not issued within the mandatory sixmonth period; if proved, adjudication should be dropped and the seized gold returned. The Adjudicating Authority was directed to conclude proceedings within six months to protect the interests of the petitioner, who is a foreign national.

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Issues: (i) Whether the show cause notice under Section 110(2) of the Customs Act was issued within the mandatory six month period and, if not, whether adjudication proceedings must be dropped and the seized goods returned.

Analysis: The Court examined the factual and procedural dispute limited to the timing and service of the show cause notice under Section 110(2) of the Customs Act. The petitioner's case is that the mandatory six month period for issuing the show cause notice was not complied with; the department contends service was effected by email. The adjudication proceedings remain pending before the Adjudicating Authority and evidence concerning issuance and service can be led there. The Court directed that any plea on time-bar and evidence in support be considered by the Adjudicating Authority and that the Authority decide the matter in accordance with law within six months, without being influenced by prior High Court observations.

Conclusion: The Special Leave Petitions are disposed of with the direction that the Adjudicating Authority consider any plea and evidence regarding compliance with Section 110(2) and decide the adjudication on merits within six months.

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