Delhi HC: SCN Cannot Be Issued After One Year, Detention of Goods Impermissible Under Section 110 of Customs Act

The Delhi High Court in the case Mohammad Arham v. Commissioner of Customs observed and has held that detention of goods by the Customs Department cannot continue beyond a period of one year, if a show cause notice was not issued to the assessee within such period of time.

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The Division bench comprising of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta was hearing the present matter.

The bench in the case cited Section 110 of the Customs Act, 1962 which prescribes a period of six months. Further, subject to complying with certain formalities, a further extension for a period of six months for the Department to issue a show cause notice can be given in terms of Section 110(5).