Standard Form for Waiver of SCN and Personal Hearing Not a Substitute for Statutory Obligation: Delhi HC rules Seizure Without SCN Illegal [Read Order]

In a recent ruling, the Delhi High Court ordered the release of goods detained by customs authorities. The court cited a failure to issue a proper show cause notice as required under Section 124 of the Customs Act, 1962. The court also questioned customs' reliance on a standard pre-signed waiver form.

The case involved a petitioner, Mohamed Shamiuddeen, who arrived in India from Hong Kong and was intercepted by customs officials at the Indira Gandhi International Airport, New Delhi. During the search conducted on the petitioner, a Rolex wristwatch in his possession was seized on suspicion of a customs violation. The petitioner was made to sign a standard form during detention, in which he waived his right to a show cause notice and personal hearing.

In the following months, customs officials did not issue any formal show-cause notice (SCN) or provide the petitioner with an opportunity for a hearing. They primarily relied on the signed waiver to justify the continued detention of the goods. The petitioner later offered proof of his Hong Kong residency upon request but still received no further communication regarding the status of the seized item.

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Aggrieved with the lack of response, the petitioner approached the Delhi High Court under Articles 226 and 227 of the Constitution of India, seeking unconditional release of his detained property. The court pointed out that under Section 124 of the Customs Act, no confiscation or penalty can be imposed unless a show-cause notice is issued in writing, the person can submit a written representation and a reasonable opportunity for a personal hearing is provided.

The court held that obtaining a pre-signed waiver from an individual during detention does not fulfil these legal requirements. The High Court relied on a similar ruling in Amit Kumar v. Commissioner of Customs (2025), where it was established that a standard form waiver could not override the statutory obligation to issue an SCN and provide a hearing.

The bench also noted that there were serious lapses in customs procedures, such as the failure to issue a written SCN despite having the petitioner’s email and phone number. The bench noted that denying an opportunity for a personal hearing also violates the fundamental principles of Natural Justice. The court further stated that natural justice is not a mere formality but should be followed in both letter and spirit. It has asserted that a printed waiver cannot strip any individual of their legal protections, especially when the case involves detention and confiscation of personal property.

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The Division bench comprising Justice Pratibhaa M. Singh and jJustice Dharmesh Sharma asserted the customs department’s failure to issue a valid show cause notice, ruled the detention illegal and directed the immediate release of the petitioner’s goods within two weeks. However, the court clarified that storage charges, if applicable, must be borne by the petitioner.

To Read the full text of the Order CLICK HERE

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