Fahim Ahmad Vs Commissioner of Customs (Delhi High Court)
Summary: The Delhi High Court considered whether absolute confiscation of a 116-gram gold bar and the consequential penalty could be sustained when no written Show Cause Notice was issued under Section 124 of the Customs Act, 1962. The Customs authorities relied upon the Petitioner’s alleged statement under Section 108 and a subsequent communication dated 07.06.2024 to contend that the requirement of a Show Cause Notice and personal hearing had been waived and that an oral Show Cause Notice had been issued.
The Petitioner, an Indian national, arrived at Indira Gandhi International Airport, New Delhi, from Bahrain on 02.06.2024. After crossing the Green Channel, Customs authorities recovered a 116-gram gold bar engraved “NAIF”, stated to be of 999 purity. It was detained under Detention Receipt No. 4546 dated 02.06.2024. A statement purportedly recorded under Section 108 was relied upon by the Respondent, including for the contention that the Petitioner did not require a Show Cause Notice or personal hearing. The gold was appraised on 07.06.2024, and the Respondent relied upon a communication submitted through the Petitioner’s Authorised Representative reiterating that position. The adjudicating authority subsequently passed the Order-in-Original dated 20.08.2024, absolutely confiscating the gold bar and imposing a penalty of Rs.1,15,000/- under Sections 112 and 114. The Commissioner of Customs (Appeals) dismissed the statutory appeal on 27.08.2025.
