9911796707🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
Follow us:
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2025 (6) TMI 1901 - HC - CustomsPeriod of limitation of filing an appeal - Seizure of gold of 992.60 gms - Confiscation - penalty - invocation of discretionary jurisdiction of this Court under Article 226 of the Constitution of India - Service of notice at the residence of appellant while he was abroad - HELD THAT - There are no merits in the submissions made by the learned counsel for the petitioner. As far as the observations made by the Hon ble Supreme Court decisions in B.C. Chathurvedi s case 1995 (11) TMI 379 - SUPREME COURT is concerned the same was passed in a disciplinary proceedings and the reasons which prompted the Hon ble Supreme Court to take the said view cannot be made applicable to the factual circumstances of this case. This is because as far as this case is concerned the same is in relation to the proceedings which are penal in nature and the petitioner was involved in an activity which is prohibited by law - the consideration which are to be applied under such circumstances cannot be treated at par with a situation in a disciplinary proceedings which may have arisen during the course of employment of the parties concerned. As far as the second decision relied on by the petitioner is concerned that is Karuvannur Service Co-operative Bank Ltd. s case 2024 (11) TMI 1233 - KERALA HIGH COURT there existed certain circumstances consequent to the certain seizures and other proceedings by the Enforcement Directors against the officials of the Service Cooperative Bank in question which resulted in delay in filing the appeal. Therefore this Court took note of the fact that the delay occurred was beyond the control of the office bearers of the Cooperative Society the petitioner in the said writ petition. As far as this case is concerned the matter is in relation to an individual who brought himself into a transaction which was prohibited by law. - Moreover it is to be noted that the statute prescribes a time limit for filing an appeal against the order impugned in this case. Even though the petitioner was abroad at the relevant time it is an admitted position that the order was served on 07.09.2024 in the residence of the petitioner and therefore he was having full knowledge of the same. Despite the same he did not take any steps to submit the appeal as required by the law within the time. Therefore considering the nature of the transaction based on which Ext.P1 was passed and insufficiency of the reasons mentioned by the petitioner to invoke the jurisdiction of this court under Article 226 of the Constitution of India There are no extra ordinary circumstances or exceptional circumstances in existence that warrant an interference of this court - it is not proper to invoke discretionary jurisdiction of this Court under Article 226 of the Constitution of India - petition dismissed.
Issues Presented and Considered
The core legal questions considered by the Court were: 1. Whether the petitioner, who failed to file an appeal within the prescribed statutory period under Section 128 of the Customs Act against the confiscation order passed under Section 154 and penalty imposed under Section 112, can be granted an extension of time to file such appeal by invoking the writ jurisdiction under Article 226 of the Constitution of India. 2. Whether exceptional or extraordinary circumstances exist to justify interference with the statutory time limit for filing an appeal against the Customs order. 3. Whether the petitioner's absence abroad during the relevant period constitutes sufficient cause to extend the limitation period for filing the appeal. 4. The applicability of precedents relating to extension of limitation and discretionary writ jurisdiction in the context of penal proceedings under the Customs Act. Issue-wise Detailed Analysis Issue 1: Jurisdiction to Extend Time for Filing Appeal under Article 226 Legal Framework and Precedents: The Customs Act prescribes a strict limitation period for filing appeals against confiscation and penalty orders under Section 128. The writ jurisdiction under Article 226 is discretionary and is not ordinarily invoked to extend limitation periods where a statutory remedy is available. The petitioner relied on the Supreme Court decision in B.C. Chathurvedi v. Union of India, which allowed extension of time in disciplinary proceedings under exceptional circumstances. The petitioner also relied on a Single Bench decision of this Court in Karuvannur Service Cooperative Bank Ltd. v. Assistant Commissioner, where delay caused by extraneous factors beyond the control of the appellant was condoned. Court's Interpretation and Reasoning: The Court distinguished B.C. Chathurvedi's case on the ground that it pertained to disciplinary proceedings within an employment context, which involved different considerations of fairness and natural justice. The present case involved penal proceedings under the Customs Act, concerning a deliberate violation of law by smuggling gold, which is a prohibited activity. The Court held that the rationale for indulgence in disciplinary cases cannot be extended to penal actions where the legislature has prescribed strict timelines to ensure finality and deterrence. Regarding the Karuvannur Service Cooperative Bank Ltd. case, the Court noted that delay there was caused by circumstances beyond the control of the appellant, involving enforcement actions against officials which prevented timely filing of appeal. In contrast, the petitioner here was an individual who voluntarily engaged in a prohibited transaction and had knowledge of the order upon its service at his residence. Key Evidence and Findings: The order of confiscation and penalty was served on the petitioner's residence on 07.09.2024. Despite having knowledge, the petitioner did not file the appeal within the statutory 60-day period. The petitioner was abroad during the relevant period but did not take timely steps thereafter. Application of Law to Facts: The Court applied the strict limitation prescribed by the Customs Act and found no exceptional circumstances warranting extension. The petitioner's absence abroad was not sufficient cause since the order was served at his residence, enabling knowledge and opportunity to act. Treatment of Competing Arguments: The petitioner's counsel argued for equitable relief based on inability to file appeal due to being abroad and reliance on precedents allowing indulgence in exceptional cases. The Court rejected these arguments, emphasizing the penal nature of the proceedings and deliberate violation involved, which required strict adherence to statutory timelines. Conclusion: The Court held that it cannot exercise discretionary writ jurisdiction to extend the limitation period for filing appeal against the Customs order in the absence of exceptional circumstances. Issue 2: Existence of Exceptional or Extraordinary Circumstances Legal Framework and Precedents: Courts have recognized that extension of limitation under Article 226 is an extraordinary remedy and is granted only in exceptional cases where the delay is caused by factors beyond the control of the appellant and where refusal would result in grave injustice. The petitioner sought to invoke this principle relying on B.C. Chathurvedi and Karuvannur Service Cooperative Bank Ltd. Court's Interpretation and Reasoning: The Court found that the petitioner's conduct did not amount to exceptional circumstances. The smuggling of gold was a deliberate prohibited act, not an inadvertent or excusable mistake. The petitioner had full knowledge of the order's service and yet did not act within time. The Court emphasized that indulgence shown in disciplinary or enforcement cases involving institutional delays cannot be equated with deliberate contravention of law by an individual. Key Evidence and Findings: The petitioner's absence abroad was the only reason cited for delay. No other circumstances beyond his control were established. The Court noted the absence of any impediment preventing the petitioner from filing the appeal once the order was served at his residence. Application of Law to Facts: The Court applied the principle that absence abroad is not a sufficient ground to extend limitation when the order is duly served and knowledge is presumed. The petitioner's failure to act promptly after service negated any claim of exceptional circumstances. Treatment of Competing Arguments: The petitioner's reliance on precedents was countered by the Court's distinction of facts and nature of proceedings. The Court rejected the contention that mere absence abroad justifies extension, especially in penal matters involving smuggling and confiscation. Conclusion: The Court concluded that no exceptional or extraordinary circumstances exist to warrant interference with the statutory limitation period. Issue 3: Effect of Service of Order at Petitioner's Residence Legal Framework: Service of order at the residence of the party is sufficient to constitute knowledge and trigger limitation period for filing appeal. The law presumes that once served, the party is aware of the order and responsible for taking timely action. Court's Interpretation and Reasoning: The Court observed that the order dated 02.09.2024 was served at the petitioner's residence on 07.09.2024. This service was not disputed. Therefore, the petitioner had constructive knowledge of the order and the limitation period commenced from the date of service. Application of Law to Facts: Despite this service, the petitioner did not file the appeal within 60 days. The petitioner's absence abroad did not absolve him of responsibility once the order was served at his residence. Conclusion: The Court held that service at residence was effective and the petitioner cannot claim ignorance or inability to file appeal beyond the prescribed period. Significant Holdings "The considerations which are to be applied under such circumstances, cannot be treated at par with a situation in disciplinary proceedings which may have arisen during the course of employment of the parties concerned." "The statute prescribes a time limit for filing an appeal against the order impugned in this case. Even though the petitioner was abroad at the relevant time, it is an admitted position that the order was served on 07.09.2024 in the residence of the petitioner and therefore, he was having full knowledge of the same." "Considering the nature of the transaction based on which Ext.P1 was passed and insufficiency of the reasons mentioned by the petitioner to invoke the jurisdiction of this court under Article 226 of the Constitution of India, I am of the view that, the exceptional circumstances, which prompted the Hon'ble Supreme Court or this Court to show indulgence in B.C. Chathurvedi's case and Karuvannur Service Co-operative Bank Ltd.'s case are not existence." "I do not find it proper to invoke discretionary jurisdiction of this Court under Article 226 of the Constitution of India and therefore, this writ petition is dismissed." Core Principles Established: - The discretionary jurisdiction under Article 226 to extend limitation for filing appeals against Customs orders is to be exercised sparingly and only in exceptional circumstances. - Penal proceedings involving deliberate prohibited acts such as smuggling do not warrant extension of limitation merely because the appellant was abroad. - Service of order at the party's residence is sufficient to commence the limitation period, and failure to act thereafter disentitles the party from relief. - Precedents allowing indulgence in disciplinary or institutional delay cases are not applicable to penal confiscation proceedings under the Customs Act. Final Determinations: The Court dismissed the writ petition, holding that no exceptional circumstances exist to extend the statutory time limit for filing an appeal against the confiscation and penalty order under the Customs Act. The petitioner's absence abroad did not justify condonation of delay, and the Court declined to exercise its discretionary writ jurisdiction under Article 226.
|
