Confiscation of ‘Gold Kada’ Without Proper Notice: Delhi HC quashes Order Due to Invalid Waiver [Read Order]

The Delhi High Court quashed an order of absolute confiscation of a gold Kada seized at Indira Gandhi International Airport, New Delhi, due to the use of an invalid standard waiver and lack of proper notice.

Sai Kiran Goud Tirupathi, petitioner-assessee,had travelled from Mali to India and arrived at Indira Gandhi International Airport, New Delhi, on 12th March 2024. He was wearing a 50-gram gold Kada, which was seized by the Customs Department. The Kada was valued at ₹2,85,079 based on its 986 purity.

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The petitioner stated that no show cause notice was issued and more than a year had passed since the seizure. He filed the petition seeking release of the Kada and setting aside of the detention order.

The petitioner's counsel argued that the gold Kada was a personal item, pointing out that it had the name 'SAI' engraved on it.

The respondent counsel, stated that the petitioner had waived the show cause notice and personal hearing through a statement and request letter dated 12th March 2024. Based on this, an Order-in-Original was passed on 30th January 2025, ordering absolute confiscation of the gold Kada.

The petitioner's counsel, however, submitted that the petitioner never received the order and was not informed about it.

The division bench of Justice Prathiba M.Singh and Justice Rajneesh Kumar Gupta heard the matter and found that the petitioner had waived the show cause notice and was not given a personal hearing. The Order-in-Original passed on 30th January 2025 had ordered absolute confiscation of the gold Kada, denied free allowance, declared the petitioner ineligible under the baggage rules, and imposed a penalty of ₹45,000.

The Court referred to a recent judgment in Makhinder Chopra v. Commissioner of Customs, which held that taking waivers in a standard format was against the law and violated principles of natural justice.

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Since a similar standard waiver was used in this case, the Court held that the order could not be sustained and quashed it. The bench directed the Customs Department to release the gold Kada after verifying the petitioner’s identity and on payment of storage charges within four weeks.

In short,the petition was disposed of.

To Read the full text of the Order CLICK HERE

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