Delhi HC sustains ₹1L Customs Fine and Penalty on Uzbek National for Improperly Importing 112 Gms Gold through Delhi Airport [Read Order]

The Delhi High Court recently upheld a customs penalty and fine amounting to ₹1,05,000 imposed on an Uzbek national for contravening provisions of the Customs Act, 1962 while bringing in 112 grams of gold through Indira Gandhi International Airport, New Delhi.

The decision given by the Delhi High Court was against a Petition filed by Gayrat Djabarov, who flew into India through the Indira Gandhi International as a tourist on 26th April, 2024. Djabarovwas apprehended by the Customs Department who discovered that he had been carrying four gold chains, two gold rings, a pair and three individual gold earrings, and two gold bracelets, all of varying purity and collectively weighing 112 grams.

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Customs authorities proceeded to detain the gold, citing violations under Sections 111(d), 111(j), and 111(m) of the Customs Act,  1962 which pertains to the improper importation of restricted goods, non-declaration, and misdeclaration.

Advocates Ravi Rathore, Maroof Khan, Richa Kumari, and Pawan, appearing for the Petitioner contended before the High Court that Djabarov had not been officially notified of any show cause notice or confiscation order regarding his apprehension and confiscation of gold, and had made multiple representations to customs authorities seeking the return of his gold.

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The Respondent Commissioner of Customs, represented by Advocates Piyush Beriwal, Sandip Munian, and Jyotsna Vyas placed on record the Order passed by the Department, disentitling ‘Free Allowance’ to Djabarov and deeming him “an ineligible Passenger” with regards to the Notification No. 50/2017-Cus dated 30.06.2017 read with Baggage Rules, 2016.

The Customs thus confiscated the gold under Sections 111(d), 111(j), and 111(m) of the Customs Act, 1962. The Respondent counsel further accused Djabarov of suppressing material facts, revealing that his authorized representative had received the Order-in-Original on July 2, 2024, contradicting his claim that he had received no communication from customs.

The Division Bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta referenced the Supreme Court judgment in Shri K Jayaram & Ors vs Bangalore Development Authority (2021) where it was clarified that a litigant would be dientitled from discretionary remedy under Article 226 if they fail to disclose past and present litigation concerning dispute amounts.

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In light of the findings, the Delhi High Court dismissed Djabarov’s petition, holding that the customs authorities acted within their rights under the Customs Act, 1962. The court directed that he could redeem the confiscated gold upon payment of ₹58,000 and an additional ₹47,000 as a penalty, allowing only re-export of the gold as per customs regulations. 

The Petitioner was further  given four weeks to complete the payment, after which the gold would be released to him or his authorized representative upon verification of identity.

To Read the full text of the Order CLICK HERE

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