Judgment

KULDIP SINGH, J.- The question for our consideration in this appeal is whether the provisions of Section 123 of the Customs Act, 1962 (the Act) would be attracted in a case where the retention of the goods has become illegal under Section 110(2) of the Act because no notice as required under the said provision was served within the statutory period.

2. The factory premises of the appellant-firm were raided by the Custom authorities on 26-5-1969 and 28 packages of synthetic fabrics of foreign origin were seized. The seizure was made under Section 110 of the Act. By the order dated 27-11-1969 the Collector Customs extended the period for the issue of show-cause notice prescribed under Section 124 of the Act by two months from the date of the order. Finally, the show-cause notice in terms of Section 124(1)(a) of the Act was received by the appellant-firm on 26-12-1969. The Assistant Collector, Bombay by the order dated 24-2-1971 under Section 112(b) of the Act, confiscated the goods in dispute and also imposed a penalty of Rs 50,000 on the appellant. The appeal filed against the order of the Assistant Collector was dismissed by the Appellate Collector. The appellant challenged