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No SCN, No Detention: Delhi HC Frees Gold Seized at IGI Airport

Case Law Details

TaxGuru Citation
2025 taxguru.in 6503
Case Name
Kurban Vs Commissioner of Customs & Ors (Delhi High Court)
Date of Judgement/Order
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Kurban Vs Commissioner of Customs & Ors (Delhi High Court)

Delhi High Court has directed the unconditional release of three gold bars seized from a passenger at Indira Gandhi International (IGI) Airport, Delhi, citing the Customs Authorities’ failure to issue a Show Cause Notice (SCN) since the seizure on December 26, 2021. The ruling, delivered on July 31, 2025, emphasizes that prolonged detention without formal notice is not permissible.

The petitioner, Kurban, a resident of Saudi Arabia, had arrived from Saudi Arabia when the gold bars were seized. He stated that the gold was purchased for his sister’s marriage. Following the seizure, a detention receipt was issued, and the petitioner visited the Customs office in May 2022, where he was reportedly informed that an order for duty deposit would be issued. However, no such order or SCN has been received to date.

The Court noted that it was an “admitted position” that no SCN had been issued in the matter. This was a critical factor in its decision.

Judicial Precedents Guide Decision

The Delhi High Court’s judgment relied on its own established precedents regarding the necessity of an SCN for continued detention of seized goods. Specifically, the Court referenced:

  • Amit Kumar v. The Commissioner of Customs (2025:DHC:751-DB)
  • Mr Makhinder Chopra vs Commissioner of Customs New Delhi (2025:DHC:1162-DB)

In these previous rulings, the Court had consistently held that in the absence of an SCN, the detention of goods is liable to be quashed, and the seized items must be released.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,213

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