The Delhi High Court has directed the release of gold jewellery seized from a woman returning from Umrah, observing that the customs department had violated statutory requirements by failing to issue a Show Cause Notice.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta, ruled in favour of the petitioner and quashed both the Order-in-Original and the Order-in-Appeal passed by the customs authorities. The bench emphasized that the confiscation was illegal due to the absence of a proper Show Cause Notice and personal hearing as mandated under Section 124 of the Customs Act, 1962.
The case pertained to Ms. Gulista Khatoon, who was intercepted at the Indira Gandhi International Airport in New Delhi on September 20, 2023, while returning from a pilgrimage to Mecca. Two gold bangles weighing 117 grams, which she was wearing, were detained by the Customs Department. Authorities later appraised the bangles at ₹6.47 lakh and imposed a penalty of Rs. 65,000 along with an equal amount as redemption fine, directing their absolute confiscation without providing her a formal hearing.
“Natural justice is not merely lip-service,” the Court observed, rejecting the department’s reliance on a standard pre-printed waiver allegedly signed by the petitioner. The bench referred to earlier precedents including Amit Kumar v. Commissioner of Customs and Makhinder Chopra v. Commissioner of Customs, reiterating that printed waivers of SCN and personal hearing violate legal safeguards.
The Court also clarified that personal jewellery used by a returning passenger qualifies as “personal effects” and cannot be detained merely on the grounds that it is made of 24-carat gold. Citing the Supreme Court judgment in Pushpa Lekhumal Tolani v. Directorate of Revenue Intelligence, the High Court underscored that such jewellery, if meant for personal use, is exempt from customs duty under the Baggage Rules, 2016.
In light of these findings, the Court ordered that the seized bangles be returned to the petitioner or her authorized representative by July 21, 2025. The Court also directed that warehousing charges, if any, be adjusted against the amount already deposited by the petitioner during appeal proceedings.
Case Details
Case Title: GULISTA KHATOON Versus Customs Commissioner
Case No.: W.P.(C) 9313/2025
Date: 08/07/2025
Counsel For Petitioner: Dr. Ashutosh and Ms. Fatima
Counsel For Respondent: Harpreet Singh, SSC
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
