I.J. RAO, ASSISTANT COLLECTOR OF CUSTOMS & ORS. vs BIBHUTI BHUSHAN BAGH & ANR.

The Supreme Court held that under Section 110(2) of the Customs Act, 1962, the issuance of a notice for extension of time beyond six months for confiscation of seized goods is necessary, but must maintain confidentiality of the investigation. The Court ruled that the extension order is quasi-judicial and must adhere to the principles of natural justice, requiring notice to the affected parties. The High Court's quashing of the extension order was upheld, and the appellants were directed to restore the seized machines to the respondents.