COLLECTOR OF CUSTOMS, BOMBAY vs M/S.M.J. EXPORTS LTD.

The Supreme Court held that the show cause notice issued beyond one year from the import of goods is not covered by Section 28(1) of the Customs Act, 1962, thus rendering it time-barred. The Court upheld the penalty of Rs. 50 lakhs imposed for the illegal export of Haemodialysers, interpreting that the exemption under Notification No. 208 of 1981 did not permit re-export for profit. The judgment in M.J. Exports Ltd. v. CEGAT was reaffirmed, emphasizing that life-saving equipment imported under the Open General Licence must be used in India, not exported for profit.