The Delhi High Court has directed the release of gold bars seized from a passenger at the Indira Gandhi International (IGI) Airport, stating that the Customs Department had failed to issue a mandatory Show Cause Notice (SCN) before detaining the goods.
The Bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta noted that the seizure was unlawful in the absence of a proper SCN. Citing past rulings in Amit Kumar v. Commissioner of Customs and Makhinder Chopra v. Commissioner of Customs, the Court reiterated that prolonged detention without initiating proper proceedings violates procedural fairness.
“Due to the delay in adjudication of this matter, and due to non-issuance of SCN, in the facts of this case, 50% of the warehouse charges as were applicable on the date of detention would be liable to be paid,” the bench said.
The petitioner, a Saudi Arabia resident, had arrived in Delhi on December 26, 2021, carrying three gold bars intended for crafting jewellery for his sister’s wedding. The gold was seized by Customs authorities at the airport and a detention receipt was issued. Despite subsequent follow-ups, including a visit to the Customs office in May 2022, no formal order or SCN was issued for over three years.
The Court ruled that the petitioner is entitled to the release of the gold bars, provided he pays the applicable customs duty. Importantly, the Court directed that no redemption fine or penalty shall be levied. However, due to the long delay in adjudication, the petitioner is required to pay 50% of the warehouse charges applicable at the time of detention.
The court directed the petitioner to appear before the concerned Customs department on 30th July, 2025 at 11:30 AM. The Customs Department shall hear the Petitioner and pass an order informing the Petitioner as to how much customs duty is to be deposited. No redemption fine or penalty will be payable.
Case Details
Case Title: Kurban Versus The Commissioner Of Customs & Ors.
Case No.: W.P.(C) 9957/2025
Date: 16.07.2025
Counsel For Petitioner: Mobeen Akhter
Counsel For Respondent: Atul Tripathi
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