Foreign National’s 84-gram Gold Chain Detained by Customs without SCN: Delhi HC Quashes Detention, Directs Release [Read Order]
The Court held that as personal jewellery, the chain was eligible for release under the Baggage Rules, 2016, and noted that detention beyond one year without a Show Cause Notice violated Section 110 of the Customs Act, 1962.
84-gram Gold - Customs - Delhi HC - Quashes Detention - taxscan
84-gram Gold - Customs - Delhi HC - Quashes Detention - taxscan
The High Court of Delhi, quashed the detention of a foreign national’s 84-gram gold chain detained by Customs at Indira Gandhi International (IGI) Airport without issuance of a Show Cause Notice ( SCN ) and directed its release.
Akmal Usmanov,petitioner-assessee, filed a petition on behalf of his brother, whose 84-gram gold chain was detained by Customs at IGI Airport, New Delhi, on 30th January, 2024, when he arrived from Russia.
The petitioner stated that the chain was appraised on 29th May, 2024, based on an authority letter, and a detention receipt was issued, but no Show Cause Notice was served.
The Court asked on 2nd July, 2025, who had filed the petition as the pairokar, and on 23rd July, 2025, it was clarified that the petitioner’s sister, Aziza Usmanova, residing in India, would appear. She confirmed that the detained passenger was her brother and that she held an Overseas Citizen of India (OCI) card.
The bench accepted her as bona fide. The Customs Department filed an affidavit on 22nd July, 2025, stating that hearings had been scheduled in June 2025, but the petitioner did not appear.
The Court noted that the writ petition was filed on 28th May, 2025, and personal hearings were given after the filing, but no Show Cause Notice had been issued. The petitioner, a foreign national, agreed to re-export the 84-gram gold chain.
Since it was personal jewellery, the High Court held that the petitioner was eligible under the Baggage Rules, 2016, and referred to past judgments confirming that personal gold jewellery cannot be confiscated.
Justice Prathiba M.Singh and Justice Shail Jain observed that under Section 110 of the Customs Act, 1962, a Show Cause Notice must be issued within one year, and detention beyond that without notice was not allowed. Relying on this principle, the Court quashed the detention and directed the release of the gold chain.
The petitioner/pairokar was instructed to appear before the Customs Department on 21st August, 2025, for verification and release, and warehousing charges were to be paid.
Accordingly ,the petition was disposed of.
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