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Criminal Court Cannot Release Goods Seized Under Customs Act: Gauhati HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 11768
Case Name
Deputy Director Vs State of Nagaland (Gauhati High Court)
Date of Judgement/Order
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Deputy Director Vs State of Nagaland (Gauhati High Court)

Summary: The Gauhati High Court allowed a criminal petition under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), and set aside the order dated 12.03.2026 passed by the Principal District and Sessions Judge/Special Judge, Dimapur in G.R. Case No. 718/2025, corresponding to DRI Seizure No. 02/CL/IMP/ARECA/DRI/DiRU/2025-26. The impugned order had directed release on zimma of 570 bags of areca nuts seized by the Directorate of Revenue Intelligence (DRI), on furnishing a bond of Rs.10 lakh along with surety.

The case arose from a seizure made by DRI officers at Kukidolong on 20.12.2025 after information was received that trucks were carrying allegedly smuggled foreign-origin areca nuts from Manipur to Dimapur. Two trucks were intercepted at around 7:00 a.m. and were found carrying 570 bags of areca nuts weighing approximately 45,600 kg., with an estimated value of Rs.3,19,52,376/-. The drivers produced transit passes purportedly issued by the Forest Department, Phek Division, Government of Nagaland. On examination, the transit passes were found to cover only 25,000 kg. of areca nuts, whereas the actual quantity recovered was approximately 45,600 kg.

The areca nuts, trucks and other recovered items and documents were seized under Section 110 of the Customs Act, 1962, on suspicion that the goods were smuggled and of foreign origin and liable to confiscation. The investigation under the Customs Act was initiated and, as recorded by the Court, the show cause notice under Section 124 of the Customs Act had not yet been issued.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,970

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