Failure to issue SCN within One Year: Delhi HC Orders Release of Seized Gold Jewellery [Read Order]

The Delhi High Court has ruled that the Customs Department cannot continue detaining gold jewellery seized from an arriving passenger when no Show Cause Notice (SCN) has been issued within the statutory period prescribed under Section 110 of the Customs Act, 1962. The Court directed release of the detained gold articles after noting that the one-year window for issuing a SCN had already expired.

The petitioner, Dip Ashokkumar Hadani, approached the Delhi High Court seeking release of one gold bangle and one gold chain weighing 273 grams, which were seized at the Indira Gandhi International Airport, New Delhi. The articles were initially detained on 8.10.2022 under Detention Receipt No. 637, followed by a fresh Detention Receipt No. 50071 issued on 7.12.2022.

The petitioner, an Indian passport holder returning from Dubai, stated that he had purchased the jewellery abroad for personal use. Upon arrival, he was intercepted by Customs officials, who seized the jewellery on the ground that it was not declared at arrival, despite the petitioner admitting to having purchased it overseas.

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Represented by Richa Kumari and Pawan, the petitioner argued that the continued detention was illegal, as no SCN had been issued even after more than one year from the date of seizure. Reliance was placed on the Supreme Court’s ruling in Union of India & Another v. Jatin Ahuja (Civil Appeal No. 3489/2024), which held that goods must be released if a SCN is not issued within the timelines mandated under Section 110 of the Customs Act, 1962.

The Customs Department, represented by Akshay Amritanshu, submitted that a notice for personal hearing had been issued to the petitioner on 5 November 2025, and thus due process was being followed. The respondent argued that the petitioner was under a legal obligation to declare the jewellery and pay applicable customs duty.

The Bench comprising Justice Prathiba M. Singh and Justice Renu Bhatnagar held that the Customs Department had failed to comply with the statutory requirements under Section 110 of the Customs Act, 1962. The Court reaffirmed that the failure to issue a SCN within six months of seizure, or within the extended period of six additional months granted with recorded reasons, renders the detention invalid.

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The Court noted that the one-year period contemplated under Section 110 had elapsed and no SCN had been issued, nor had any extension been obtained within time. Consequently, the detention of the jewellery was deemed impermissible. The Court directed that the gold jewellery be released to the petitioner, subject to payment of applicable customs duty and warehousing charges calculated as on the date of detention.

It directed the petitioner to appear before the Customs Department on 2.12.2025, either personally or through an authorised representative, with the further requirement that the petitioner must join the proceedings virtually. The Court also designated a Nodal Officer to ensure smooth compliance with the order. With these directions, the writ petition was disposed of.

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DIP ASHOKKUMAR HADANI vs COMMISSIONER OF CUSTOMS , 2025 TAXSCAN (HC) 2607 , W.P.(C) 16372/2025 , 26 november 2025 , Richa Kumari and Mr. Pawan, Advs. , . Akshay Amritanshu, SSC