Customs Fails to Issue SCN in a Year: Delhi HC Orders Release of Two Gold Chains Belonging to Uzbek National [Read Order]

In a recent decision, the Delhi High Court directed the Customs Department to release two gold chains belonging to an Uzbek national after finding that the department had not issued a show cause notice even after detaining the goods for over a year.

Thepetitioner, Alisher Ochilov, approached the court through a writ petition seeking the release of two gold chains weighing 199 grams that were seized by the Customs Department at IGI Airport, New Delhi, on 24 March 2023.

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The petitioner’s counsel argued that the gold chains were used personal jewellery and were worn by him at the time of travel. The counsel also submitted that no show cause notice had been issued by the department and no final order had been passed in the matter.

The counsel further argued that the petitioner, being a foreign national, was willing to re-export the gold chains and was ready to comply with all formalities required by law. He maintained that the Customs Department had no justification for continuing to hold the jewellery without following due process.

The Customs Department’s counsel argued that the petitioner was granted an opportunity of hearing in May 2025 but failed to appear. No valid explanation was given for not issuing a show cause notice under Section 110 of the Customs Act within the statutory time limit of six months, or the extended period of one year.

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The division bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that the gold jewellery appeared to be used as personal items. The court also referred to past decisions from the Supreme Court and the Delhi High Court, which held that used personal jewellery worn by a passenger falls under the definition of “personal effects” and should not be detained under the Baggage Rules, 2016.

The court found that the department failed to issue a show cause notice within the legally prescribed period and therefore the continued detention of the goods was not permissible.

The court directed that the gold chains be released to the petitioner for re-export, subject to verification. They allowed the petitioner to collect the goods through an authorised representative upon written confirmation. Warehousing charges from the date of detention were to be paid by the petitioner. The writ petition was allowed.

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