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No SCN, No Hearing: Delhi HC Sets Aside Customs Order on Seized Goods

Case Law Details

TaxGuru Citation
2025 taxguru.in 6699
Case Name
Inderpal Singh Vs Commissioner of Customs (Delhi High Court)
Date of Judgement/Order
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Inderpal Singh Vs Commissioner of Customs (Delhi High Court)

Delhi High Court has permitted a passenger to file a belated appeal against an order from the Commissioner of Customs, citing a failure by the customs department to provide a personal hearing before confiscating his goods. The court’s decision underscores the principle that the right to a hearing, a key tenet of natural justice, is not a mere formality but a mandatory legal requirement.

The case, Inderpal Singh vs. Commissioner of Customs, involved a passenger, Inderpal Singh, who arrived at Indira Gandhi International Airport from Sharjah, Dubai, on January 23, 2024. Customs officials seized a gold chain weighing 60 grams and four iPhone 15 Pro Max mobile phones he was carrying.

On March 29, 2024, the Commissioner of Customs issued an “Order-in-Original” that confiscated the four mobile phones and ordered the confiscation of the gold chain, though it provided an option for its redemption upon payment of a fine of Rs. 45,000 and applicable duties. A penalty of Rs. 85,000 was also imposed on Singh.

The petitioner, Inderpal Singh, challenged this order, arguing that the gold chain was for personal use and that the customs department had failed to issue a show cause notice or provide a personal hearing. In response, the department claimed that Singh had signed a waiver for an oral show cause notice.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,516

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