Sunil Kumar Gupta Vs Commissioner of Customs (Delhi High Court)
The Delhi High Court heard a writ petition filed under Article 226 seeking release of one gold kada and one gold chain, totaling 160 grams, seized by the Customs Department on 24th February 2024 at Indira Gandhi International Airport. The petitioner was returning from Dubai when the goods were intercepted. While the petitioner’s statement was recorded, no Show Cause Notice (SCN) under Section 110 of the Customs Act, 1962, was issued, nor was any hearing notice provided.
Relying on the Supreme Court decision in Union of India & Anr. v. Jatin Ahuja, the Court noted that goods are to be unconditionally released if no SCN under Section 110 is issued within the statutory period. The Court highlighted that Section 110A allows interim release of goods but does not override the mandatory provisions of Section 110(2), which prescribe timelines for issuing notice. Section 124(1)(a) requires a notice within six months of seizure, with a possible extension by the Principal or Commissioner of Customs for an additional six months, provided the person is informed. In this case, neither the notice nor any extension was issued.
The Court observed that the statutory requirements for issuing notice had not been complied with. As a result, the petitioner is entitled to unconditional release of the seized goods, subject only to payment of applicable Customs Duty. No redemption fine, penalty, or interest would be charged, although warehousing charges would apply based on rates at the time of detention.
