Detention of 100-Gram Gold Kada: Delhi HC Orders Release Citing Invalidity of Pre-Printed SCN Waiver [Read Order]
The Court observed that the pre-printed standard waiver of a written Show Cause Notice was not valid in law, as held in Amit Kumar vs The Commissioner of Customs:2025:DHC:751-DB.
Gold - kada - Taxscan
Gold - kada - Taxscan
The HIgh Court of Delhi, ordered the release of a 100-gram gold kada detained by Customs, holding that the pre-printed waiver signed by the petitioner could not substitute for a proper Show Cause Notice (SCN ).
Aman Verma, petitioner-assessee, filed a petition seeking release of a 100-gram gold kada detained by Customs on 19th March, 2024, when he arrived in New Delhi from Dubai. The jewellery was appraised on 8th August, 2024.
He approached Customs on 6th May and 8th August, 2024, for its release, but it was not returned, and no Show Cause Notice was issued within the statutory period under the Customs Act.
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On 23rd July, 2025, the Court directed Customs to clarify details of the oral notice, personal hearing, any orders passed, and statements recorded, and restrained the Department from passing any Order-in-Original.
On 14th August, 2025, Customs filed a counter affidavit relying on a pre-printed waiver dated 19th March, 2024, signed by the petitioner, in which he requested release of the jewellery and waived his right to a written notice and personal hearing. Despite this, Customs issued a personal hearing notice on 29th May, 2025.
Justice Prathiba M.Singh and Justice Shail Jain heard the parties and reviewed the documents, noting that no Order-in-Original had been passed and the petitioner’s statement under Section 108 was not on record.The Court observed that the pre-printed standard waiver of a written Show Cause Notice was not valid in law, as held in Amit Kumar vs The Commissioner of Customs.
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The Court noted that Section 124 of the Act requires that no order of confiscation or penalty can be passed without giving the owner a written notice of the grounds, an opportunity to make a written representation, and a reasonable opportunity to be heard.
A printed waiver cannot substitute for a proper oral or written notice, and natural justice must be complied with in letter and spirit.
The bench concluded that the detention of the petitioner’s jewellery was unlawful and set aside the Order-in-Original. It directed the petitioner to appear before Customs on 2nd September, 2025, to take release of the jewellery on payment of applicable warehousing charges, and provided the contact details of the officer to assist with the procedure. The Department’s counter affidavit was taken on record, and the petition was disposed of.
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