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HomeIndirect TaxesDelhi HC Declines to Release Seized Gold Bar, Directs Appeal Against Customs...

Delhi HC Declines to Release Seized Gold Bar, Directs Appeal Against Customs Confiscation

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The Delhi High Court has refused to order the release of a 100-gram gold bar seized by Customs officials at the Indira Gandhi International Airport, New Delhi, ruling that the matter must now be pursued through the appellate mechanism. The court, however, provided relief by ensuring that any appeal filed would not be time-barred.

A bench of Justice Prathiba M. Singh and Justice Anish Dayal noted that since a personal hearing had been granted and an Order-in-Original issued, the writ petition could not be entertained. Instead, the proper course was to file an appeal before the Commissioner (Appeals).

Gold Bar Seized at IGI Airport

The case arose when an Indian passenger, arriving from Saudi Arabia on June 24, 2024, carried a 100-gram gold bar valued at ₹6.48 lakh. According to the traveler, he intended to declare the gold at the red channel and pay the applicable customs duty. Customs authorities, however, seized the bar and issued a detention receipt, alleging non-declaration.

Despite the passenger’s willingness to pay duty, no show cause notice was issued within the statutory six-month period under Section 110 of the Customs Act, 1962.

Following High Court directions earlier this year to conduct a hearing, Customs passed an Order-in-Original on July 28, 2025. The order denied the passenger any “free allowance” under the Baggage Rules, declared him an “ineligible passenger,” and ordered the absolute confiscation of the gold bar. A penalty of ₹20,000 was also imposed.

Importantly, the court directed that if such an appeal is filed by September 20, 2025, it should not be dismissed on limitation grounds and must be adjudicated on merits by November 30, 2025.

Case Details

Case Title: Mohammad Afsar Khan Versus Commissioner Of Customs

Case No.: W.P.(C) 13423/2025

Date: 2nd September, 2025

Counsel For  Petitioner: Richa Kumari

Counsel For Respondent: Akshay Amritanshu

Read More: IRS Vivek Chaturvedi Appointed as Member, CBIC 

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ 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 her career as a freelance tax reporter in the leading online legal news companies.

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