Sanchit Gupta Vs Commissioner of Customs (Delhi High Court)
The Delhi High Court heard petitions filed by two individuals seeking the release of gold jewellery—comprising a gold chain and a gold kada weighing 200 grams—seized by the Customs Department at Indira Gandhi International Airport, New Delhi, on 12th February 2023. The petitioners claimed the jewellery was old and personally used, brought back from Dubai. During proceedings, the court ordered the production of the seized gold items for inspection. Upon examination, the court found that the jewellery was, in fact, brand new and not previously worn, contradicting the petitioners’ representation. No Show Cause Notice (SCN) had been issued by Customs regarding the seizure.
The petitioners relied on the Supreme Court judgment in Union of India & Anr. v. Jatin Ahuja (Civil Appeal No. 3489/2024), which clarified that under Section 110 of the Customs Act, 1962, if no SCN is issued within six months (extendable in writing by a further six months), the seized goods are liable to be released. In this case, more than one year had elapsed without any SCN, making continued detention impermissible. Accordingly, the court directed the Customs Department to release the seized gold items to the petitioners, subject to payment of applicable customs duty and warehousing charges.
