Delhi HC grants Relief to Traveler, Quashes Customs Order Over Invalid SCN Waiver [Read Order]

In a recent case, the Delhi High Court set aside a customs order that detained goods, holding that if an oral SCN waiver has to be agreed to by the person concerned, the same ought to be in the form of a proper declaration, consciously signed by the person concerned.

The petitioner, Javed Alam, an Indian citizen, was returning from Dubai after purchasing gift items for a family wedding. He voluntarily approached the Red Channel upon arrival at IGI Airport, New Delhi, on 20th September, 2024.

Despite voluntarily disclosing the goods, the customs officials detained them without offering the option to pay duty.

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The goods included 23 branded mufflers, 13 pashminas, 44 branded clothing pieces, and two bottles of Johnnie Walker Blue Label. The petitioner claimed that he was made to wait for over six hours and that his statement under Section 108 of the Customs Act, 1962, was taken forcefully.

Later, an Order-in-Original dated 15th January, 2025, was passed by the Adjudicating Authority, rejecting all free allowances and directing absolute confiscation of goods. A penalty of ₹1,60,000 was also imposed on the petitioner.

Aggrieved by the order of the Adjudicating Authority, the petitioner approached the division bench led by Justice Prathiba M and Justice Rajneesh Kumar Gupta.

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The counsel representing the customs department submitted that the petitioner had passed through the Green Channel and had signed a waiver form, thereby forfeiting the right to a formal SCN or hearing.

Meanwhile, the counsel for the petitioner contended that the order was passed without issuing an SCN and without affording any personal hearing. The counsel also stated that the printed standard waiver relied on by the department had no legal validity.

The petitioner was represented by counsels Richa Kumari, Yatin Bhutani, and Pawan, while the respondent was represented by Aditya Singla, Senior Standing Counsel, along with counsels Ritwik Saha and Siddharth Saxena.

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After hearing both sides, the court examined the Order-in-Original and observed that it expressly acknowledged that no SCN was issued and no personal hearing was granted. It noted that the waiver relied upon by the department was merely a standard printed format, lacking the legal validity of a conscious and informed declaration.

The court, referring to the precedent in Amit Kumar v. Commissioner of Customs (2025 TAXSCAN (HC) 319), held that such waivers do not meet the requirements of Section 124 of the Customs Act, 1962, and set aside the Order-in-Original dated 15th January, 2025. The court further directed that the petitioner be granted a fresh hearing and disposed of the case.

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To Read the full text of the Order CLICK HERE

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