A.Banerji, J. - (1.) The principal question in this petition is whether the respondents are justified in withholding the seized goods belonging to the petitioner and whether they are liable to return the same to the petitioner no. 1.
(2.) The officers of the Central Excise and Customs intercepted, seized certain imported goods at Ghaziabad. Petitioner no. 1 claimed through its Managing Director, petitioner no. 2, that the goods belonged to petitioner no. 1 and had been imported by it through proper invoice and import permit. The petitioner claimed that the seized goods which are components of watches have not yet been returned to the petitioner. It was further pleaded that in view of the provisions of Section 110 of the Customs Act, 1962, hereinafter referred to as 'the Act', it was mandatory for the respondents to have given a show cause notice as contemplated under Section 124(a) of the Act within six months of the seizure of the goods, and since that was not done, they were liable to return the seized goods. The petitioners therefore claimed that the matter remained pending with the respondents and further proceeding before them was liable to be set aside and a direction be issued for the return of the seized goods to the petitioner no. 1.
(3.) The case of the respondents, on the other hand, was that the goods were smuggled item and did not belong to petitioner no. 1 and had been rightly seized. Further that the notice under Section 110(2) had been duly given and the respondents were entitled to continue the proceedings against the petitioners and were not liable to return the seized goods.;