TaxTMI 
TaxTMI 
1987 (12) TMI 54
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....ganj, Jabalpur. The petitioner alleges that when he had gone to Gujarat for purchase of tobacco, the Central Excise Preventive Officer and local Central Excise Officers visited the warehouse and sealed all the five godowns on 29-5-1978 vide Annexure R/6. The stock of all the five godowns were checked between 5-7-1978 and 21-10-1978 except from 7-8-1978 to 13-8-1978 and 25-8-1978 to 27-9-1978 and was seized as per Panchanama Annexures R/11 to R/65. 3.A show cause notice dated 2-1-1979 (Annexure P/7) was served on the petitioner requiring him to show cause to the Collector, Central Excise as to why penalty should not be imposed, duty on unmanufactured tobacco found short should not be demanded and tobacco should not be confiscated. The pet....
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....toms Act, 1962 which had been adopted for the purposes of Central Excises and Salt Act by Notification No. 68-A/63-C.E., dated 4-5-1963 issued under Section 12 of the Central Excises and Salt Act that the said power could be exercised. Section 124 of the Customs Act provides for issue of show cause notice before confiscating any goods or imposing any penalty. Section 110(2) of the said Act provides that where any goods are seized under sub-section (1) and no notice in respect thereof is given under clause (a) of Section 124 within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized. The petitioner submits that the seizure within the meaning of Section 110 was done on 29-5-....
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....use (a) of Section 124 within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized : Provided that the aforesaid period of six months may, on sufficient cause being shown, be extended by the Collector of Customs for a period of not exceeding six months." Sub-section (2) provides that where any goods are seized under sub-section (1) and no notice in respect thereof is given under clause (a) of Section 124 within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized. 10.Section 124 (a) is reproduced below :- "124. Issue of show cause notice before confiscation of goods, etc. - No order confiscating....
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....ion were told to open the premises of the warehouse for inspection, but they declined on the ground that they had no authority from the petitioner. However, on inspection of the accounts, several irregularities, as detailed in para 6 of the return, were noticed. Since it was found that the warehouse was operated even in the absence of the petitioner by the members of the petitioner's family who declined to allow inspection, the Squad sealed all the five godowns of the petitioner. Panchanama (Annexure R/5) was prepared on the same day preventing any further operation from the warehouse by any one in the absence of the petitioner and till such time the petitioner returned to Jabalpur and the checking was completed by the authorities. The reco....
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....bound to return the T.V. set to the petitioner. On counting the limitation from 29-5-1978, We find that the respondents failed to take action within the period of six months the reform. The show cause notice dated 2-7-1979 was beyond the prescribed period. We, therefore, hold that the impugned order of confiscation and imposition of penalty is within jurisdiction and must accordingly be quashed. The respondents are bound to return the articles seized to the petitioner. 15.As regards criminal prosecution, sufficient particulars of filing of the complaint and other relevant information are wanting. We, therefore, decline to express any opinion on that count. Liberty is reserved to the petitioner to raise all such objections against the mai....