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2014 (5) TMI 86 - HC - CustomsProvisional release of the goods - Absence of issuance of valid show cause notice – Bar of Limitation - Seizure of imported Fabrics - Refund of Pre-deposit - Interpretation of Sections 110(2) and 124 of Customs Act - Return of two containers and goods seized – Held that:- The object of enacting Section 110(2) is that the officer of Customs department may not deprive the right to property for indefinite period to the person from whose possession the goods are seized u/s 110(1) - Relying upon The Hon’ble Apex Court in Chaganlal Gainmull v. Collector of Central Excise [1989 (11) TMI 59 - SUPREME COURT OF INDIA] - If no action by way of issue of a show cause notice is initiated u/s 124(a) within the period of six months, stipulated u/s 110(2) the effect would be that the person from whom the goods were seized would become entitled to their return. A combined reading of Sections 110(2), 124 and 110A spells out that any order for provisional release shall not take away the right of assessee u/s 110(2) r/w Section 124 - However, where no action is initiated by way of issuance of show cause notice u/s 124(a) within six months or extended period stipulated u/s 110(2) the person from whose possession the goods were seized becomes entitled to their return - The remedy of provisional release is independent of remedy of claiming unconditional release in the absence of issuance of any valid show cause notice during the period of limitation or extended limitation prescribed u/s 110(2) – The counsel for the petitioner had not pressed for release of Rs. 2 crores as noticed thus, while partially accepting the prayer of the petitioner for release of the goods belonging to the petitioner unconditionally, it is directed that the amount of Rs. 2 crores shall be adjusted against liability that might be determined while adjudicating the matter - Decided in partly in favour of assessee.
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