HomeIndirect TaxesDelhi HC Orders Immediate Release of Seized Gold Jewellery After Customs Delay...

Delhi HC Orders Immediate Release of Seized Gold Jewellery After Customs Delay in Implementing Appellate Order

The Delhi High Court has directed the Customs authorities at IGI Airport to release gold jewellery seized from a passenger, citing undue delay in implementing an appellate order that had already permitted its release. 

The bench of Justice Prathiba M. Singh and Justice Shail Jain has observed that since more than three months had passed since the Order-in-Appeal dated July 15, 2025, the Customs Department could not withhold its execution without any legal basis.

The petitioner, Rohit Arora employed with a multinational company, was returning from Dubai on May 18, 2024, when he was detained at IGI Airport, Terminal 3. Customs officials seized a gold kada and a gold chain weighing 52 grams, and issued a detention receipt. Subsequently, the jewellery was appraised on May 31, 2024.

On December 19, 2024, the Assistant Commissioner of Customs passed an Order-in-Original declaring the passenger as an “ineligible passenger” under the Baggage Rules, ordering absolute confiscation of the jewellery and imposing a penalty of ₹55,000 under Sections 112(a) & 112(b) of the Customs Act, 1962.

Following directions of the Delhi High Court in March 2025, the petitioner filed an appeal before the Commissioner of Customs (Appeals). The Order-in-Appeal dated July 15, 2025 allowed release of the jewellery on payment of redemption fine of ₹35,000, payment of applicable customs duty, and reduction of penalty to ₹35,000.

However, the Customs Department did not act upon the appellate order, leading the petitioner to approach the Court again.

The Court observed that more than three months had passed since the appellate order, and no stay or challenge to the appellate decision was reported by Customs.

Thus, the Court held that the order must be implemented without further delay.

The Court ordered release of the jewellery upon compliance with the conditions within two weeks. Warehouse charges to be levied at 50% of the applicable rate, calculated at rates prevailing on the date of detention. The petitioner to appear before the competent authority on November 3, 2025, for completing formalities.

Case Details

Case Title: ROHIT ARORA Versus Customs Commissioner

Case No.: W.P.(C) 16228/2025

Date:  27th October, 2025 

Counsel For Petitioner: Richa Kumari 

Counsel For Respondent: Atul Tripathi

Read More: FinMin Reviews Quarterly AIR of Duty Drawback for Gold and Silver Jewellery

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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular