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Customs SCN waivers on pre-printed forms do not constitute informed consent: Delhi HC

Case Law Details

TaxGuru Citation
2025 taxguru.in 7044
Case Name
Kartik Sahdev Vs Commissioner of Customs (Delhi High Court)
Date of Judgement/Order
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Kartik Sahdev Vs Commissioner of Customs (Delhi High Court)

Delhi HC emphasized that waivers on pre-printed forms do not constitute informed consent, and personal hearing is mandatory. The Customs Department cannot detain bona fide baggage beyond statutory limits. Delhi High Court held that detention of personal gold jewelry without proper show cause notice and hearing violated principles of natural justice. The Petitioner may redeem the goods by paying the redemption fine and penalty.

Overview of the Case

The case of Kartik Sahdev v. Commissioner of Customs centers on the detention of personal gold jewelry belonging to Kartik Sahdev and his wife, who were intercepted by customs officials at the IGI Airport in New Delhi. The couple, returning from Bangkok, was found wearing two gold kadas and two gold chains, which were subsequently detained by the customs department. The key legal issues raised in the petition filed by Sahdev under Article 226 of the Constitution of India were the procedural illegalities surrounding the detention and the subsequent orders.

The petitioner challenged the Order-in-Original dated January 16, 2024, and the Order-in-Appeal dated January 1, 2025. The core of the petitioner’s grievance was that no show cause notice was issued to him after the goods were detained. The customs department claimed that he had waived his right to a notice by signing a pre-printed, standard proforma. Following this, the customs authorities issued an order that gave the petitioner an option to redeem the goods upon payment of a fine of Rs. 1,20,000 and a penalty of Rs. 97,000. The total value of the seized goods was appraised at Rs. 9,67,266.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,146

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