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Passenger’s non-appearance cannot prevent issuance of Customs SCN

Case Law Details

TaxGuru Citation
2025 taxguru.in 7768
Case Name
Gurpreet Singh Sonik Vs Commissioner of Customs (Delhi High Court)
Date of Judgement/Order
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Gurpreet Singh Sonik Vs Commissioner of Customs (Delhi High Court)

The Delhi High Court has ruled against the Customs Department in a case concerning the seizure of a gold chain from a passenger. The court, in the case of Gurpreet Singh Sonik vs Commissioner of Customs, held that the department’s failure to issue a Show Cause Notice (SCN) within the statutory time limit of six months, or a one-year extended period, invalidates the continued detention of the goods.

The case originated with Gurpreet Singh Sonik, who was traveling from Bangkok to India on March 13, 2024. Customs officials at the airport detained a gold chain weighing approximately 100 grams that he was wearing. Sonik claimed the chain was a personal item manufactured in India and that he had been wearing it when he departed the country two weeks prior. He provided an affidavit from a goldsmith to support his claim.

After the detention, Sonik filed a representation with the Customs Department. However, a SCN was not issued. The Customs Department argued that the delay was because Sonik did not appear for the appraisal of the gold chain.

Judicial Precedents

The Delhi High Court dismissed the Customs Department’s argument, citing a previous ruling in Dhiren v. Commissioner of Customs. The court reiterated that a passenger’s non-appearance for the appraisal of seized goods is not a valid reason to delay or withhold the issuance of a SCN under Section 110 of the Customs Act, 1962.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,942

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