Pranavbhai Ambalal Patel Vs Additional Director General (Gujarat High Court)
Summary: The Gujarat High Court allowed a writ petition challenging the prolonged detention and subsequent seizure of a Toyota Land Cruiser imported from Japan. The petitioner purchased the vehicle for USD 54,000, filed Bill of Entry No.7472252 dated 26.12.2024 and paid customs duty of Rs.99,78,795. Out-of-charge was granted on 02.01.2025. On 07.02.2025, however, the Directorate of Revenue Intelligence searched the petitioner’s residence, prepared a Panchnama and directed him not to deal with or part with the vehicle. No contemporaneous seizure order under Section 110(1) of the Customs Act, 1962 was passed.
During pendency of the writ petition, the DRI ultimately issued a seizure memo only on 17.04.2026, more than one year after the original detention, followed by a show-cause notice dated 08.05.2026 under Section 124 read with Section 28(4). The Department also passed a provisional release order on 18.05.2026 requiring a bond for Rs.85,95,860 and a bank guarantee of Rs.1.20 crore by relying upon paragraph 2 of Circular No.35/2017-Customs dated 16.08.2017. The High Court noted that the relied-upon part of the Circular had already been struck down by the Delhi High Court in Shanus Impex Vs Union of India & Ors. to the extent it curtailed the adjudicating authority’s discretion. The Gujarat High Court strongly deprecated the Department’s continued reliance upon that paragraph.
