Vikram Jain Vs Principal Commissioner of Customs (Madras High Court)
Madras High Court held that seizure of Indian Currency under section 110 of the Customs Act, 1962 without issuance of show cause notice within stipulated time period as prescribed u/s. 110(2) is without authority of law. Accordingly, seizure memo is liable to be quashed.
Facts- The case on hand makes this Court the need to elucidate the distinction between Section 110 (2) and Section 110 (3) of the Customs Act, 1962. In the instant case, Indian Currencies have been seized from the petitioner. The petitioner seeks for return of those Indian Currencies. The petitioner pleads innocence of any customs violations as seen from the averments contained in the affidavit filed in support of this writ petition and therefore, according to the petitioner, seizure of the Indian Currencies from him is arbitrary and illegal. The seizure has been effected by the respondent (Customs Department) by exercising powers under Section 110 of the Customs Act.
Conclusion- Held that since the Customs Department is empowered to exercise its powers only as per the provisions of Customs Act, 1962, the seizure of Currencies whether the same has been effected as in the instant case or from a passenger, who is trying to carry the same abroad illegally is immaterial and irrelevant. Once the Customs Department has effected seizure as per Section 110 of the Customs Act, 1962, the said seizure of Currencies will only fall under Section 110(1) of the Customs Act, 1962 and therefore, necessarily Section 110(2) of the Customs Act, 1962 has to be strictly followed. In the instant case, it is an admitted fact that no show cause notice has been issued by the Customs Department to Mittalal or to the petitioner herein within the stipulated time period as prescribed under Section 110(2) of the Customs Act, 1962. In view of the same, the decisions relied upon by the learned counsel for the petitioner viz., the Division Bench Judgment of the Gujarat High Court as well as the Division Bench Judgment of the Delhi High Court squarely apply to the facts of the instant case as well. Therefore, the rayer sought for in this writ petition seeking for quashing of the seizure memo dated 08.05.2024 as well as for return of Currencies back to the petitioner has to be granted by this Court.
