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Customs: Gold Bar Ordered to Be Released as No SCN Issued Within Time

Case Law Details

TaxGuru Citation
2026 taxguru.in 176
Case Name
Suhel Khan Vs Commissioner of Customs (Delhi High Court)
Date of Judgement/Order
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Suhel Khan Vs Commissioner of Customs (Delhi High Court)

The petition was heard by the Delhi High Court through hybrid mode. The petitioner approached the Court under Article 226 of the Constitution of India seeking release of one gold bar weighing 116.60 grams, which had been detained by the Customs Department.

The factual background was that the petitioner, an Indian passport holder, travelled from Saudi Arabia to India on 19 May 2024. Upon arrival at the Indira Gandhi International Airport, New Delhi, he was intercepted by Customs officials and the gold bar was detained on the same date. The gold bar was subsequently appraised on 22 May 2024. The petitioner contended that despite the detention, no Show Cause Notice (SCN) had been issued to him by the Customs authorities.

Relying on the recent judgment of the Supreme Court of India in Union of India v. Jatin Ahuja, counsel for the petitioner argued that in the absence of an SCN within the statutory period, continued detention of the seized goods was not legally sustainable. The cited judgment clarified that under Section 110(2) of the Customs Act, 1962, goods seized must be returned if no notice is issued within six months, unless the period is validly extended by the competent authority. The Supreme Court further held that interim release provisions do not dilute the mandatory requirement of issuing notice within the prescribed time.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,304

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