Customs Dept Fails to issue SCN in Time: Delhi HC Directs Release of Gold Seized from Minor at IGI Airport [Read Order]

In a recent ruling, the Delhi High Court directed the Commissioner of Customs to release gold bangles seized from a minor passenger at IGI Airport, New Delhi, as the department failed to issue a show cause notice (SCN) within the statutory limitation period prescribed under the Customs Act, 1962.

Mohammad Arham, the petitioner, had filed a writ petition seeking the unconditional release of two yellow gold bangles weighing 50 grams, which were detained by customs officials on 24 January 2024 at Terminal 3 of the airport. At the time of the incident, the petitioner was a minor and was intercepted while passing through the Green Channel. The seizure was formalized through a Detention Receipt bearing No. 3605.

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The petitioner’s counsel argued that more than a year had passed since the seizure and no SCN had been issued as required under Section 110 of the Customs Act. The law mandates that an SCN must be issued within six months of seizure, with a possible extension of an additional six months, provided proper procedure is followed.

The petitioner, now having attained majority, approached the court seeking release of the items as the customs department had taken no steps to appraise the goods or initiate any adjudication.

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The customs department counsel admitted on instructions that no show cause notice had been served, nor had any appraisement been carried out during the entire one-year period. The department also acknowledged that the statutory deadlines had lapsed.

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The bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that failure to issue a SCN within the limitation period rendered the continued detention of goods impermissible. The court directed the customs department to appraise the seized gold and release it to the petitioner within four weeks, subject to identity verification.

The court directed that the appraisal was to be conducted in his presence or that of an authorized representative since the petitioner had attained majority. The court also waived storage and warehouse charges. The writ petition was disposed of.

To Read the full text of the Order CLICK HERE

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