Sajad Ahmed Kak Vs Commissioner of Customs (Delhi High Court)
In a long-standing dispute, the Delhi High Court directed the Customs Department to process a refund for gold confiscated from petitioner Sajad Ahmed Kak at IGI Airport in March 2014. The gold, weighing approximately 458 grams, was seized, and a show cause notice was issued, followed by an adjudication order in 2015 for absolute confiscation along with a penalty. However, this was challenged, and in 2016, the Commissioner (Appeals) allowed redemption of the gold upon payment of a fine of ₹3.5 lakhs and applicable customs duty.
Despite the petitioner seeking redemption within the prescribed period, the Customs Department failed to convey the duty amount, and eventually disposed of the gold without notifying the petitioner. Repeated efforts to follow up were ignored, prompting the petitioner to file for a refund. An initial refund application was rejected, but upon appeal in 2020, the order was set aside, and the case was remanded for fresh adjudication. Nevertheless, no action was taken for nearly five years.
The High Court noted this inaction and found the disposal of the gold without notice to be potentially unlawful. Observing the significant delay and the rise in gold prices, the Court ordered the refund to be processed within one month. It directed the Adjudicating Authority to examine whether proper notice was given before disposing of the gold, the amount realized from the sale, and whether the petitioner is entitled to interest. The Court emphasized adherence to natural justice and warned that failure to act would entitle the petitioner to seek revival of the writ petition. A compliance hearing is scheduled for July 15, 2025.
