9911796707
TMI Blog1996 (8) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... teel, which was a banned item, but which had been painted over to give the impression that they were made of mild steel. Thus, Customs duty had not been levied and the stainless steel containers were liable to be confiscated. The respondents were required to show cause there- against. The respondents filed a writ petition in the Delhi High Court on 8th February, 1980, impugning the issuance of the Section 28 and Section 124 show cause notices. On 22nd August, 1980 the High Court allowed the writ petition. 2.This appeal is directed against the judgment and order of the High Court. When special leave was granted on 9th October, 1980, this Court ordered that the stainless steel containers which had been seized by the appellants would continue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t any goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance of the goods for home consumption." Section 28 reads thus :- "S. 28 - Notice for payment of duties not levied, short levied or erroneously refunded. - (1) When any duty has not been levied or has been short levied or erroneously refunded, the proper officer may, within six months from the relevant date, serve notice on the person chargeable with the duty which has not been levied or which has been so short levied or to whom the refund has erroneously been made, requiring him to show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. Further, Section 28 provides time limits for the issuance of the show cause notice thereunder commencing from the "relevant date"; "relevant date" is defined by sub-section (3) of Section 28 for the purpose of Section 28 to be the date on which the order for clearance of the goods has been made in a case where duty has not been levied; which is to say that the date upon which the permissible period begins to run is the date of the order under Section 47. The High Court was, therefore, in error in coming to the conclusion that no show cause notice under Section 28 could have been issued until and unless the order under Section 47 had been first revised under Section 130. Section 124 reads thus :- "S. 124. - Issue of show-cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fraud can be set right by initiation of the process of confiscation of the fraudulently cleared goods under Section 124. 7.It is relevant to bear in mind that the issuance of the show-cause notice under Section 124 contemplates that the respondents' response shall be considered and only thereafter will the matter be decided. The respondents shall, therefore, have full opportunity to satisfy the authorities that there was no importation of banned goods which makes them liable to confiscation. 8.The High Court noticed that the appellants' allegation was that the stainless steel containers were painted over to suppress their true nature, but it took the view that the respondents were not required to disclose the nature or price of contain ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
