Detention of 115g Gold Chain Without Issuance of SCN Under Customs Act: Delhi HC Directs Release as Bona Fide Baggage [Read Order]
The Court held that personal jewellery worn by the passenger qualifies as personal effects and cannot be detained beyond the statutory period without following due process.
![Detention of 115g Gold Chain Without Issuance of SCN Under Customs Act: Delhi HC Directs Release as Bona Fide Baggage [Read Order]](https://images.taxscan.in/h-upload/2025/07/25/2068970-delhi-hc-gold-chain-scn-customs-act-directs-release-bona-fide-baggage-taxscan.webp "Detention of 115g Gold Chain Without Issuance of SCN Under Customs Act: Delhi HC Directs Release as Bona Fide Baggage [Read Order]")
The High Court of Delhi, set aside the detention of a 115g gold chain for non-issuance of a timely Show Cause Notice (SCN) under the Customs Act, 1962, and directed its release as bona fide baggage under the Baggage Rules, 2016. Agya Singh,petitioner-assessee, arrived at IGI Airport, New Delhi from Bangkok on 11th November, 2022. The Customs Department detained his 115-gram...
The High Court of Delhi, set aside the detention of a 115g gold chain for non-issuance of a timely Show Cause Notice (SCN) under the Customs Act, 1962, and directed its release as bona fide baggage under the Baggage Rules, 2016.
Agya Singh,petitioner-assessee, arrived at IGI Airport, New Delhi from Bangkok on 11th November, 2022. The Customs Department detained his 115-gram gold chain, which he was wearing. While a detention receipt was issued, the gold was not appraised, and no Show Cause Notice was issued to him.
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The assessee counsel stated that after the writ petition was served, a notice for personal hearing was issued on 8th July, 2025, fixing dates for 11th, 18th, and 25th July, 2025. The department's counsel submitted that the petitioner could appear for appraisal, after which proceedings would follow.
Justice Prathiba M.Singh and Justice Rajneesh Kumar Gupta held that once goods are detained, it is mandatory to issue a Show Cause Notice and provide a personal hearing. As per Section 110 of the Customs Act, 1962, a SCN must be issued within six months, extendable by another six months with proper justification. In this case, even after one year, no SCN was issued, rendering the detention impermissible.
The Court further noted that under the Baggage Rules, 2016, used personal effects brought as bona fide baggage, including jewellery worn by the passenger, can be cleared free of duty, subject to certain limits.
Relying on rulings from the Supreme Court and earlier High Court decisions, it was clarified that personal jewellery, even if newly purchased, may still qualify as personal effects if intended for personal use.
Citing judgments including Pushpa Lekhumal Tolani, Saba Simran, and Makhinder Chopra, the Court concluded that personal jewellery worn by the petitioner fell within the scope of personal effects and was exempt from detention.
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Accordingly, the Court set aside the detention and directed that the petitioner may appear before the Customs Department or authorise a representative to collect the jewellery, upon submission of proper communication confirming no objection.
Given the inaction by Customs for nearly three years, warehousing charges were waived. The petition was accordingly disposed of.
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