Provisional Release Of Seized Object Won’t Extend Timelimit For Issuing Show Cause Notice In Pre-2018 Cases : Supreme Court

In a case involving a seized Maserati car imported prior to 2018, the Supreme Court upheld a Delhi High Court order directing its release, finding that the Directorate of Revenue Intelligence’s failure to issue the show-cause notice within the statutory time period under Section 110(2) of the Customs Act, 1962, entitled the importer to reclaim the vehicle. The car, seized in 2010, was provisionally released under Section 110A, but no show-cause notice was issued within the six-month period stipulated, nor was the period extended lawfully beyond one year. The Court held that provisional release under Section 110A does not exempt or delay the mandatory deadline imposed by Section 110(2) for issuing show-cause notices. The DRI had argued otherwise, citing case law and past practice, but the Supreme Court found such arguments contrary to the plain language of the statute. The judgment reiterates that statutory timelines (especially for actions like show cause notices in customs law) must be strictly adhered to, and that failure to do so leads to automatic entitlement of release. The appeal by DRI was dismissed, granting relief to the importer.