2026 (3) TMI 1166 - HC - Customs

Limitation under the Customs Act: court refused writ to quash a Show Cause Notice and directed authority to reassess the time bar defence.

Whether the High Court should quash a Show Cause Notice as time barred under the Customs Act was the central issue; the court refrained from exercising ... Territorial jurisdiction - Exercise of extraordinary writ jurisdiction to quash a show cause notice - notice barred for want of an extension under Section 110(2) - Whether the Show Cause Notice is time barred or the petitioner not served with the Show Cause Notice in the matter of extension of period provided under Sub-Section (2) of Section 110 of the Customs Act, 1962. Exercise of extraordinary writ jurisdiction to quash a show cause notice - HELD THAT:- The Court declined to invoke its extraordinary jurisdiction to quash the Show Cause Notice since proceedings were pending against multiple accused and exercise of such jurisdiction at this stage could impede ongoing inquiries; the petitioner's challenge on limitation was kept open for adjudication by the respondents-authority rather than being decided by this Court. The Court therefore did not determine the legal question sought to be raised in the petition and refrained from issuing relief in writ jurisdiction (paras 8, 11, 12). [Paras 8, 11, 12] Writ petition dismissed without adjudication on the merits; Court refrained from quashing the Show Cause Notice and left the issue to the respondents-authority The Court observed that the petitioner has submitted an explanation asserting the Show Cause Notice to be time barred and directed the respondents to consider that explanation and the decisions relied upon by the petitioner, including earlier Supreme Court decisions and the recent apex judgment cited by respondents, namely Union of India & Ors. v. Jatin Ahuja [2025 (10) TMI 1285 - SC ORDER]; the Court required the authority to deal with the contention on limitation while conducting further proceedings (paras 9, 10, 12). The Court did not pronounce any view on the correctness of the limitation plea but mandated consideration by the adjudicating authority. [Paras 9, 10, 12] Respondents-authority to consider the limitation/time-bar contentions urged by the petitioner and decide the matter in accordance with law and the precedents relied upon Final Conclusion: The High Court refused to quash the Show Cause Notice in writ jurisdiction, kept the limitation issue open, and directed the respondents-authority to consider the petitioner's reply on limitation/time-bar in light of the precedents relied upon and decide the matter accordingly. Issues: Whether the High Court should exercise its extraordinary writ jurisdiction to quash the Show Cause Notice dated 25 April 2025 on the ground that the notice is time barred for want of an extension under Section 110(2) of the Customs Act, 1962.Analysis: The petition raises a contention that the Show Cause Notice is barred by limitation and that no show cause notice was issued for extension of the six month period prescribed under Section 110(2) of the Customs Act, 1962. The Court noted that proceedings under the Show Cause Notice involve multiple accused and that the petitioner has submitted a substantive reply alleging time bar and relying on precedent. Having considered the overlap with ongoing authority proceedings and the presence of other parties to the same Show Cause Notice, the Court refrained from adjudicating the limitation question on writ jurisdiction and directed the respondents-authority to consider the petitioner's explanation including the limitation defence in the light of the judgments relied upon by the petitioner and the subsequent Apex Court decision in Union of India v. Jatin Ahuja (11 September 2025).Conclusion: The Court declined to exercise extraordinary writ jurisdiction to quash the Show Cause Notice and directed the respondents to consider the petitioner's reply on limitation and decide the matter in accordance with law.Final Conclusion: The petition for quashing the Show Cause Notice is dismissed; the challenge to the Show Cause Notice on limitation grounds is left open for decision by the respondents-authority after considering the petitioner's submitted explanation and relevant precedents.