TaxTMI 
TaxTMI 
2024 (1) TMI 646
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.... fact that show cause notices were issued almost 12 years after the consignments have been imported / shipped, which is beyond reasonable period, thus suffers from the vice of being arbitrary, thereby falling foul of Article 14 of the Constitution of India. 2. It is submitted by the learned counsel for the petitioner that the issuance of notices almost 12 years from the date of import is arbitrary inasmuch as though Section 124 of the Act does not prescribe any limitaton for initiation / completion of proceeding, however all actions of the State must pass the test of reasonableness and issuance of notices after a period of 12 years suffers from the vice of unreasonable delay thereby vitiating the entire proceedings. 3. To the contrary, it....
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....nt of India. However, in Annexure P-6 one of the relevant page is missing. During the course of hearing, the missing page has been furnished by the learned counsel for the respondents. The relevant extract of the applicable clause relating to certification in the Hand Book reads as under :- "Unshredded compressed and loose form: Import of metallic waste, scrap listed in para 2.32.2 above in unshredded compressed and loose form shall be subject to following conditions :- (a) Importer shall furnish the following documents to the Customs at the time of clearance of goods; (l) Pre-shipment inspection certificate as per the format in Annexure-I to Appendix-5 from any Inspection & Certification agencies given in Appendix-5 to the effect t....
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..... I do not propose to examine the merits or otherwise of the issue for that may require investigation into facts which is foreign to Writ Jurisdiction under Article 226 of the Constitution. 5. Now with reference to the judgments relied upon by the learned counsel for the petitioner, the issue before the Hon'ble Supreme Court on both occasions was as to whether the limitation under Section 110 of the Act which governs seizure is also applicable to proceeding under Section 124 of the Act dealing with confiscation. Section 110(2) of the Act provides that when any goods are seized and notice in respect thereof is not given under Clause (a) of Section 124 of the Act within 6 months of the seizure, the goods shall be returned to the person f....
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....se of the suo moto power of revision also, the revisional authority has to initiate the proceeding within a reasonable time. Any unreasonable delay in exercise may affect its validity. What is a reasonable time, however, will depend upon the facts of each case." 6. As discussed supra any proceedings initiated or completed after a reasonable period would suffer from the vice of arbitrariness thereby falling foul of Article 14 of the Constitution of India. If we keep the above aspect in mind though the limitation prescribed under Section 110 of the Act may not be applicable to proceedings under Section 124 of the Act. Nevertheless, the proceedings under Section 124 of the Act ought to be initiated within a reasonable period. Now on gleaning ....
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....time. What is reasonable time, would depend upon the facts and circumstances of each case. In cases of this nature, where the weight of the cargo discharged by the vessel of a Steamer Agent is questioned, it is not possible for a Steamer Agent to defend themselves against the show cause notice long after the vessel had sailed. Therefore, the third question of law is also be answered in favour of the appellant." (ii) J.Sheik Parith Vs. Commissioner of Customs and another reported in 2020 (374) E.L.T. 15 (Mad.): "23. In Premier Ltd. v. UOI (W.P. No. 12780 of 2016 dated 13.02.2017), a Division Bench of the Bombay High Court considered a challenge to the show cause - cum-demand notice dated 22.07.1991, in response to which personal hearings....