Judgment

RAY, C. J.:- These three appeals are by certificate from three judgments of the Bombay High Court. The main judgment is dated 31 August, 1970 in Civil appeal No. 1133 of 1971. The judgments in the other two appeals are dated 1 September, 1970 following the judgment in Civil Appeal No. 1133 of 1971.

2. In Civil Appeal No. 1133 of 1971 the appellants carry on business inter alia as manufacturers of cotton yarn and cotton fabrics. The first five respondents are the Central Excise Authorities. The 6th respondent is the Bank. Between 11 March, 1963 and 20 March, 1963 the Central Excise Authorities conducted search at the factory and mill premises belonging to the appellants. The Excise Authorities seized 1662 bales of processed and grey cotton fabrics belonging to the appellants. The 6th respondent, the Bank was the pledgee of the seized goods. The goods were lying in the godown and bonded store rooms at the mill premises and the Bank was in possession of the same under a cash credit arrangement with the appellants. The Excise Authorities also seized several books of accounts, documents, vouchers belonging to the appellants and lying at the mill premises.

3. On 8 April, 1963 the appellants made an application under Article 226 of the Constitution in the High Court at Bombay. Respondent No. 1, the Assistant Collector of Central Excise on 16 September, 1963 made an application to the Collector of Central Excise respondent No. 5 for extension of time for giving notice under Section 124 (a) of the Customs Act, 1962 (hereinafter referred to as the Act.) On 20 September, 1963 an order of extension for a further period of six months was made. The appellants asked for a writ of mandamus directing the Excise Authorities to release and hand over the goods and books of accounts. documents and vouchers to the appellants.

4. Two of the grounds advanced by the appellants for the release of the goods and documents were these. First, the Excise Authorities did not issue a "show cause notice" within six months of the seizure of the goods under Section 110 of the Act. Second, the order of extension was made without giving the appellants an opportunity to show cause against the grant of extension. The High Court did not accept those contentions. The High Court held that an order for extension could be made at any time within or after six months of the date of seizure. The High Court relied on a Bench decision of the Mysore High Court and held that the order of extension could not be said to be void on account of absence of opportunity to show cause against the order of extension. The High Court dismissed the application of the appellants.

5. In this appeal the only contention which was advanced on behalf of the appellants is that the order dated 20 September, 1963 passed by the Excise Authorities under S. 110 of the Act is bad and therefore the appellants are entitled to the release of the goods.

6. The contentions on behalf of the appellants were two-fold. First, the order dated 20 September, 1963 was not within six months of the seizure of the goods, and was, therefore, illegal. Second, the order dated 20 September, 1963 was made without giving an opportunity to the appellants to be heard and was, therefore, in violation of principles of natural justice.

7. Counsel for the appellants relied on the decision of this Court in Assistant Collector of Customs v. Charan Das Malhotra, (1971) 3 SCR 802 in support of the contentions advanced in these appeals. In Malhotra case (1971) 3 SCR 802 (supra) the Rummaging staff of the Excise Authorities raided the business premises and seized goods on 19 March, 1963. On 6 March, 1964 the Excise Authorities served a notice under Section 124 (a) of the Act to show cause why the goods should not be confiscated and penalty should not be imposed. It was contended that because the goods were seized on 19 March, 1963 the initial period of six months provided under Section 110 (2) of the Act expired on 19 September, 1963