Gold Bent into Kada Shape is Raw Gold, Not Jewellery: Delhi HC directs to avail Statutory Appeal against Customs Seizure [Read Order]

In a recent ruling, the Delhi High Court held that gold bent into the shape of a kada is raw gold and not jewellery, and directed the petitioner to avail the statutory appellate remedy after noting that the Customs Department had already passed an Order-in-Original confiscating the gold.

Zubaida Aziz, the petitioner, approached the Delhi High Court through her Special Power of Attorney holder, challenging an Order-in-Original dated 12 June 2024 passed by the Assistant Commissioner of Customs, Terminal-3, Indira Gandhi International Airport, New Delhi.

By the impugned order, two gold items described as elongated pieces of gold bent into kada shape, weighing a total of 116 grams, were ordered to be absolutely confiscated.

The petitioner is an Indian passport holder who had travelled to Saudi Arabia for pilgrimage. On her return to India on 29 February 2024, she was intercepted by customs officials at the IGI Airport, New Delhi, and the gold items were seized on the same day through a detention receipt.

The petitioner’s counsel argued that no show cause notice was issued before passing the confiscation order and that no personal hearing was granted to the petitioner, which amounted to a violation of principles of natural justice.

The Customs Department’s counsel argued that the petitioner had waived the issuance of a show cause notice as well as the opportunity of a personal hearing.

The Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain examined the seized gold items after directing the Customs Department to produce them before the Court. Upon inspection, the Bench observed that the items were not jewellery but raw gold pieces bent into the shape of bangles or kadas.

The court observed that since an Order-in-Original had already been passed in the matter, the proper course for the petitioner was to challenge the same by filing a statutory appeal before the appropriate appellate authority.

The court disposed of the writ petition by granting liberty to the petitioner to file an appeal before the Commissioner (Appeals) by 31 January 2026. The court directed that if the appeal is filed within the said time, it shall not be dismissed on the ground of limitation and shall be decided on merits after granting a personal hearing. The petition was disposed of in these terms.

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