Intzar Ahmad Vs Commissioner of Custom & Ors. (Delhi High Court)
Gold bars seized should be released, if show cause notice is not issued within the prescribed time frame as per the Customs Act: Delhi HC
Background
The Customs Act states that, when the goods or articles are seized as specified under the act, the show cause notice should be issued within the six months ( along with the additional period of 6 months) of the seizure of such goods or articles, else the seized goods cannot be retained by the customs department.
In the present case, the department on 19.05.2023 have detained gold bard weighing 233 grams from the petitioner when he was travelling from Saudi Arabia to India. The goods had been detained as per Section 110 of the Customs Act,1962 and the Show Cause notice had not been issued till the date of filing the Writ Petition.
The Petitioner had relied on the precedent , “Jatin Ahuja” pronounced by the Supreme court wherein it was held that the goods cannot be detained under the seizure in case of non-issuance of the Show Cause Notice within the prescribed period.
The Delhi High Court held in the present case that, the gold should be conditionally released upon payment of warehouse charges and waived off the penalty and redemption fine.
