TMI Blog2024 (1) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 through the provisions of the Act, the largest period for taking action is provided under Section 28 of the Act for recovery of duty in case of fraud, suppression or wilful misstatement. Keeping the scheme of the Act in mind it appears to me that impugned proceedings under Section 124 of the Act, 12 years after the date of the subject import cannot stand the scrutiny of reasonableness/arbitrariness. Thus, it leaves no room for any doubt in my mind that the impugned proceedings under Section 124 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent while importing any metal scrap and a duty is cast on the steamer agent to ensure that the above requirement is complied with, which is mandated under Para 2.32.1., 2.32.2(A) of the Handbook of Procedures read with Board circular No.56/2004 dated 18.10.2004. Relevance and significance of the pre-shipment certificate has been explained by the Delhi High Court in the case of Worldwide Logistics Survey v. Union of India, 2012 SCC OnLine Del 1750 : (2012) 283 ELT 495 wherein it is held as under : 7. We have examined the contiones raised by the petitioner, but are unable to agree with the same. Paragraph 2.32.1 quoted above, which is under the heading General Procedure for Licensing of Restricted Goods states that import of any form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adioactive contaminated or any other explosive material in any form either used or otherwise. 8. A reading of the aforesaid paragraph would show that preshipment inspection certificate by an inspection certification agency is required to be produced / submited by the importer to the port / custom authorities. It further stipulates that certification agency must certify that the consignment does not contain any kind of arms, ammunition, mines, shells cartridges, radioactive contaminated or any other explosive in any form either used or otherwise. A reading of the impugned order would show that Commissioner of Customs (Import), Nhava Sheva has rightly rejected the contention of the petitioner that the certifying agency was not concerned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeding 6 months. It was held by the Hon'ble Supreme Court that the limitation prescribed under Section 110 of the Act cannot control the provisions of Section 124 of the Act. However, the question here is whether the issuance of notices under Section 124 of the Act, 12 years after the import in Chennai Airport can be stated to be action taken within a reasonable period. The above question becomes relevant for it is trite law that whenever the statute does not prescribe limitation for taking any action, courts have consistently held that such action must be taken within a reasonable time. In this regard, it may be relevant to refer to the following judgments: (i)State of Punjab v. Bhatinda District Coop. Milk Producers Union Ltd., re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is provided under Section 28 of the Act for recovery of duty in case of fraud, suppression or wilful misstatement. Keeping the scheme of the Act in mind it appears to me that impugned proceedings under Section 124 of the Act, 12 years after the date of the subject import cannot stand the scrutiny of reasonableness/arbitrariness. In this regard it may be relevant to refer to the following judgments wherein considering adjudication under various fiscal enactments which did not provide for limitation it was held that the proceedings were illegal on the premise that the same has been made after an unreasonable delay. (i) J.M.Baxi and Co. Vs. UOI reported in 2016 (336) E.L.T. 285 (Mad) : 16. In the order of adjudication date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that such delay would vitiate the validity of the notice itself holding at paragraph 9 that the power to issue a show cause notice carries with it the responsibility to adjducate upon it promptly. ... 28. In Sanghvi Reconditioners Pvt. Ltd. v. Union of India (2018 (12) GSTL 290), a Division Bench of the Bombay High Court considered the delay of fifteen (15) years from issuance of a show cause notice and thirteen (13) years after a hearing for fresh proceedings had been initiated by the revenue. This was also a case where the proceedings had been consigned to the call book. The petitioner in that matter succeeded on the ground that the inordinate delay had not been justified by the revenue. 29. In Transworld Shipping Services ..... X X X X Extracts X X X X X X X X Extracts X X X X
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