58g Gold Chain Seized from Saudi Passenger, No SCN issued: Delhi HC Orders Fresh Personal Hearing [Read Order]

The Delhi High Court has held that the alleged waiver of a Show Cause Notice (SCN) in a 58 gram gold seizure matter was not legally valid, directing the Customs Department to grant a fresh personal hearing in accordance with the procedure mandated under the Customs Act, 1962.

The petition was filed by Javed Ali Gouse, whose 58 gram gold chain was seized at the Indira Gandhi International Airport, New Delhi. He had been travelling from Saudi Arabia to Delhi when Customs officials intercepted him and detained the jewellery.

According to the petitioner, no SCN under Section 124 of the Customs Act, 1962 was ever issued and no personal hearing was afforded to him. He therefore sought release of the gold chain, arguing that the detention and proposed adjudication were contrary to the procedure mandated by law.

Represented by D. S. Chadha, the petitioner contended that the Customs Department had neither issued a formal SCN nor served any notice of hearing. It was argued that no voluntary waiver had been executed, and that any alleged undertaking or printed form obtained during appraisal could not amount to a conscious waiver of statutory rights. Counsel submitted that the concept of an oral SCN has no statutory foundation and cannot be treated as compliance with Section 124 of the Customs Act, 1962.

The Customs Department, represented by Aakarsh Srivastava and Anand Pandey, argued that the petitioner’s authorised representative had waived the requirement of a personal hearing and had accepted an oral SCN. They produced an undertaking said to have been signed by the petitioner’s counsel and submitted that hearing notices for multiple dates in August 2025 had been sent to the petitioner and his counsel, which were not attended.

The Bench of Justice Prathiba M. Singh and Justice Renu Bhatnagar held that printed waivers and pre-filled formats cannot substitute statutory requirements under the Customs Act, 1962. The Court reiterated that an oral SCN cannot be treated as valid compliance with Section 124. The Court observed that a waiver must be a conscious, voluntary act and that expecting passengers or their representatives to sign standard documents at the point of appraisement is legally untenable.

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The Bench noted uncertainty regarding whether the hearing notices relied upon by the Department were ever properly served. Therefore, the Court restated that notices must be served through both physical and electronic modes, including email and mobile communication.

Moreover, the Court directed the Customs Department to grant the petitioner a fresh personal hearing and to serve a notice of hearing on the petitioner’s email address and mobile number. The Court also directed the designated Nodal Officer at IGI Airport Customs to facilitate compliance. The writ petition was disposed of in these terms.

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