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Seized Gold Ordered to Be Released Due for Customs Failure to Issue SCN: Delhi HC

Case Law Details

TaxGuru Citation
2025 taxguru.in 12977
Case Name
Dip Ashokkumar Hadani Vs Commissioner of Customs (Delhi High Court)
Date of Judgement/Order
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Dip Ashokkumar Hadani Vs Commissioner of Customs (Delhi High Court)

The Delhi High Court considered a writ petition filed under Article 226 of the Constitution seeking release of one gold bangle and one gold chain weighing a total of 273 grams, which had been seized by the Customs Department at Indira Gandhi International Airport, New Delhi. The petitioner, an Indian passport holder, had travelled to Dubai as a tourist and purchased the jewellery for personal use. Upon arrival in India, the petitioner was intercepted by customs officials, and the jewellery was seized under a detention receipt dated 8 October 2022, followed by a fresh detention receipt issued on 7 December 2022. It was an admitted position that the jewellery was purchased abroad and was not declared on arrival.

The petitioner argued that the continued detention of the jewellery was illegal as no show cause notice (SCN) had been issued under the Customs Act, 1962, within the prescribed time. Reliance was placed on the Supreme Court’s decision in Union of India v. Jatin Ahuja, which clarified that in the absence of a show cause notice within the statutory period under Section 110(2) of the Customs Act, seized goods must be released. The petitioner also contended that no personal hearing had been granted. The Customs Department responded that a notice for personal hearing had been issued on 5 November 2025.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,146

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