Monish Kansal Vs Commissioner of Custom & Ors. (Delhi High Court)
The Delhi High Court heard a petition filed by an Indian national residing in the United States, seeking the release of a Rolex watch seized by the Customs Department at Indira Gandhi International Airport, New Delhi, on 22nd February 2025. The petitioner, a U.S. Permanent Resident, claimed the watch was a personal effect intended for re-export. No Show Cause Notice (SCN) had been issued by Customs. The petitioner submitted photographs to demonstrate past personal use of the watch. During proceedings, the detained watch was produced in court and observed to be used, with visible scratches on the dial and strap. The petitioner relied on the Supreme Court ruling in Directorate of Revenue Intelligence v. Pushpa Lekhumal Tolani (2017), which held that foreign passengers may bring personal jewellery into India for re-export without paying duty, regardless of whether the items are new or used, provided they are bona fide personal effects.
The petitioner further argued that the seizure violated the principles established in Union of India & Anr. v. Jatin Ahuja, where the Supreme Court clarified that goods seized under customs law must be released if no SCN is issued within the statutory period prescribed under Section 110(2) of the Customs Act, 1962. Under Section 110, the six-month period for issuing notice may be extended in writing by up to six months. In the present case, more than one year had passed without any SCN being issued for the watch, making continued detention impermissible.
