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Release Undeclared Seized Gold on Payment of Fine & Warehousing Charges: Delhi HC

Case Law Details

TaxGuru Citation
2025 taxguru.in 6132
Case Name
Rakesh Kumar Jat Vs Commissioner of Customs (Delhi High Court)
Date of Judgement/Order
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Rakesh Kumar Jat Vs Commissioner of Customs (Delhi High Court)

Delhi High Court, in a recent ruling, has directed the Customs Department to release a 64-gram gold piece seized from Rakesh Kumar Jat, an Indian citizen residing in Kuwait. The decision, issued on July 14, 2025, by Justice Sanjeev Sachdeva, came after the petitioner challenged an Order-in-Original dated May 27, 2025, which had confiscated the gold for non-declaration upon his arrival at Indira Gandhi International Airport.

Rakesh Kumar Jat, who holds a valid ‘State of Kuwait Civil ID Card,’ was intercepted by Customs officials on April 26, 2024, while traveling from Kuwait to New Delhi. The gold piece, valued at ₹4,49,544/-, was detained. The petitioner’s counsel argued that no show-cause notice was issued before the impugned order, and that his authorized representative was not permitted to seek the gold’s release as per the order’s terms. He further asserted that as an eligible passenger, he was willing to re-export the gold.

The Customs Department, represented by Senior Standing Counsel Mr. Harpreet Singh, expressed willingness to implement the impugned order. The said Order-in-Original had denied the petitioner any ‘Free Allowance’ for not declaring the gold at the Red Channel or to the intercepting Customs Officer at the Green Channel. It ordered the confiscation of the gold piece under various provisions of the Customs Act, 1962, including Sections 111(d), 111(i), 111(j), and 111(m), which deal with improperly imported goods, goods imported contrary to prohibition, concealed goods, and goods not corresponding to declarations.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,653

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