Delhi HC allows Waiver of Pre-Deposit for Suspended Assam Rifles Sepoy in Gold Smuggling Case [Read Order]
The alleged gold smuggling case was based solely on a statement by another individual .
Gold - Smuggling - Taxscan
Gold - Smuggling - Taxscan
The High Court of Delhi, in a gold smuggling case, allowed a suspended Assam Rifles sepoy to waive the mandatory pre-deposit under Section 129E of the Customs Act, 1962.
Bhola Yadav, the petitioner-assessee, approached the Court under Article 226 of the Constitution of India, challenging the order dated December 31, 2024, passed by the Commissioner of Customs (Appeals), New Customs House, Indira Gandhi International Airport, Terminal 3, New Delhi, which imposed a penalty of ₹11,20,000 on him.
The case arose from allegations of gold smuggling by one Mr. Rahul Kumar, in which the petitioner, a sepoy in the Assam Rifles, was accused of providing assistance. His alleged involvement was based on a statement recorded from Mr. Pradeep Kumar.
The petitioner, who had been under suspension since June 12, 2023, by the Directorate General, Assam Rifles, Shillong, sought relief from the mandatory pre-deposit required under Section 129E of the Customs Act, 1962, claiming he was unable to afford it. His counsel submitted that the appeal had already been filed.
On September 10, 2025, the Court directed the respondent’s counsel to clarify whether a sepoy could be granted a waiver of the pre-deposit and whether any other appeal against the impugned order was pending.
The respondent’s counsel argued that Section 129E was mandatory and that financial hardship alone could not justify a waiver, citing a previous case in which the Court had upheld the statutory pre-deposit requirement and dismissed the appeal. The petitioner’s counsel, however, relied on another judgment where a waiver of pre-deposit had been granted in similar circumstances.
Justice Prathiba M. Singh and Justice Shail Jain considered the petitioner’s request, noting that it was not based solely on financial difficulty but also on his service position and suspension status. The Court observed that the petitioner, currently under suspension, earned only ₹20,000 per month and was the sole provider for his family.
The petitioner had been implicated based on a statement by Mr. Pradeep Kumar. Given these circumstances, the Court allowed the waiver of the pre-deposit.
The High Court directed the petitioner to file the appeal by 15th November 2025 before the Appellate Authority and confirmed that no pre-deposit would be required.
The bench disposed of the writ petition on these terms and also disposed of all pending applications.
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