Delhi HC Allows Release of Seized Gold Items After Traveller Agrees to Pay Fine and Customs Duty [Read Order]
Delhi High Court directs release of seized gold ornaments to a returning passenger upon payment of redemption fine, duty, and penalty as per appellate customs order
![Delhi HC Allows Release of Seized Gold Items After Traveller Agrees to Pay Fine and Customs Duty [Read Order]](https://images.taxscan.in/h-upload/2025/07/21/2067043-delhi-high-court-gold-seizure-case-taxscan.webp "Delhi HC Allows Release of Seized Gold Items After Traveller Agrees to Pay Fine and Customs Duty [Read Order]")
The Delhi High Court has directed the Customs Department to release two seized gold ornaments after the petitioner agreed to pay the customs duty, penalty, and redemption fine as determined by the authorities.
The petitioner, Sanjay Agarwal, had approached the Court seeking the release of a 116g gold chain and a 100g gold kada, valued at over ₹17.5 lakhs, that were seized from him at Delhi’s IGI Airport on November 8, 2024. He had returned from Dubai and was intercepted at the Green Channel by customs officials who detained the gold, alleging non-declaration.
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Initially, the Additional Commissioner of Customs passed an Order-in-Original on November 29, 2024, ordering absolute confiscation of the items under Sections 111(d), 111(j), and 111(m) of the Customs Act, 1962. A penalty of ₹1.8 lakh was also imposed under Sections 112(a) and 112(b). The authority also denied him the benefit of the “free allowance” typically available to passengers under Baggage Rules.
Aggrieved by the order, Mr. Agarwal filed an appeal. In a partial relief, the Appellate Authority modified the confiscation order on May 1, 2025, permitting release of the gold items on payment of Redemption Fine (RF) of ₹1,70,000 ,Customs Duty of ₹6,32,310 andPenalty (PP) of ₹1,80,000. The Appellate Authority upheld the penalty but allowed redemption of the confiscated gold under Section 125 of the Customs Act.
During the hearing , the bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta viewed that the petitioner was willing to comply with the appellate order and make the payments as calculated. Taking note of the petitioner’s readiness, the Court directed that he may appear before the Customs Department on 28th July 2025 at 12:30 PM, deposit the total amount, and collect the gold ornaments.
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The Court clarified that no additional amount would be recoverable from the petitioner beyond what had already been stated in the Appellate Order.
The petition was disposed of, bringing closure to the dispute between the passenger and customs authorities.
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