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Delhi HC Orders Immediate Release as Used Gold Chain is Personal Effect & One new iPhone is Permissible

Case Law Details

TaxGuru Citation
2026 taxguru.in 29
Case Name
Pawan Sharma Vs Commissioner of Customs (Delhi High Court)
Date of Judgement/Order
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Pawan Sharma Vs Commissioner of Customs (Delhi High Court)

The writ petition was filed under Article 226 of the Constitution challenging the Order-in-Original dated 29 January 2025 passed by the Commissioner of Customs. The petitioner also sought release of two items detained by Customs under a detention receipt dated 10 January 2024: one gold chain weighing 43 grams and one iPhone 15 Pro Max.

Under the impugned order, the gold chain was ordered to be absolutely confiscated, while the iPhone 15 Pro Max was allowed to be redeemed on payment of a redemption fine of Rs. 15,000. In addition, a penalty of Rs. 55,000 was imposed on the petitioner.

By an interim order dated 12 November 2025, the Court directed the Customs Department to produce the seized gold chain before it. In compliance, both the gold chain and the iPhone were produced in a sealed box during the hearing. Upon examination, the Court found that the gold chain was clearly an old and used chain belonging to the petitioner. The iPhone 15 Pro Max, although new, was found to be an item that was permissible to be imported.

In view of these findings, the Court held that the confiscation of the gold chain and the imposition of redemption fine and penalty were not justified. The Court directed that both the gold chain and the iPhone 15 Pro Max be released to the petitioner without payment of any customs duty, penalty, or redemption fine. However, the petitioner was directed to pay warehousing charges as applicable on the date of detention.

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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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