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Delhi HC Orders Release of Seized Gold on Payment of Duty, Fine & Penalty

Case Law Details

TaxGuru Citation
2025 taxguru.in 6120
Case Name
Sanjay Agarwal Vs Additional Commissioner of Customs (Delhi High Court)
Date of Judgement/Order
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Sanjay Agarwal Vs Additional Commissioner of Customs (Delhi High Court)

The Delhi High Court has directed the Customs Department to release seized gold items belonging to an Indian traveler, Sanjay Agarwal, following his agreement to pay the requisite customs duty, fine, and penalty. The court’s decision, delivered in a writ petition, brings to a close a dispute that began with the seizure of two gold items at Delhi’s IGI Airport.

The case involves a gold chain (116 grams) and a gold kada (100 grams) that Agarwal had purchased in Dubai. The items were detained on November 8, 2024. An initial Order-in-Original issued on November 29, 2024, had ordered the absolute confiscation of the gold and imposed a penalty of Rs. 1,80,000 on the traveler for failing to declare the items.

Agarwal challenged this order, and a subsequent Order-in-Appeal dated May 1, 2025, modified the decision. The appellate authority partially allowed the appeal, permitting the release of the gold upon payment of a redemption fine of Rs. 1,70,000 along with the applicable customs duty. The original penalty of Rs. 1,80,000, however, was upheld.

During the High Court hearing, the petitioner’s counsel confirmed his client’s willingness to comply with the Order-in-Appeal. The court was informed of the total payable amount, which included Rs. 6,32,310 in customs duty, the Rs. 1,70,000 redemption fine, and the Rs. 1,80,000 penalty. The High Court’s order mandates that upon the deposit of these amounts, the seized gold items must be released to the petitioner. The court specified that no further payments would be required. The provided judgment does not cite any judicial precedents.

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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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