‘Natural Justice Not Lip Service’: Delhi HC allows to File Appeal Despite Time Elapsed as Customs Dept Fails to Provide Hearing [Read Order]

The Delhi High Court allowed to file an appeal which was time elapsed against a customs confiscation order stating the denial of personal hearing and non-service of SCN to the petitioner.

The petitioner, Inderpal Singh, arrived at Delhi’s IGI Airport from Sharjah in January 2024 carrying a gold chain and four iPhone 15 Pro Max mobile phones. The Customs authorities detained the items, subsequently passing an Order-in-Original (OIO) on 29th March 2024, ordering absolute confiscation of the phones, partial confiscation of the gold chain (with an option of redemption upon payment of fine and duties), and levying a penalty of ₹85,000.

The petitioner approached the High Court under Articles 226 and 227 of the Constitution, challenging the confiscation and penalty on grounds that no proper show cause notice (SCN) was issued and, more critically, no opportunity for personal hearing was provided.

It was also submitted by the petitioner that the gold chain is a personal effect of the Petitioner in terms of the Baggage Rules, 2016.

The Customs Department placed its reliance on the waiver of the oral show cause, which was signed by the Petitioner. However, the Bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta was unconvinced.

The court relied on the recent decision in Amit Kumar v. Commissioner of Customs, where the Court held that such pre-drafted waiver forms do not constitute valid waiver under law. In this case the bench said that “A perusal of Section 124 of the Act would show that even after an oral show cause notice is given, the authority has the discretion to issue supplementary notice under circumstances which may be prescribed.”

The court, in Amit Kumar case, observed that “Natural justice is not merely lip-service. It has to be given effect and complied with in letter and spirit.”

The bench directed to release the gold chain subject to payment of Rs. 45,000/-. Further, although the statutory period for filing an appeal had lapsed, the Court, in the interest of justice, permitted the petitioner to file an appeal before the Appellate Authority within 30 days.

The authority has been directed to dispose of the appeal within three months. Additionally, regarding the gold chain, the Court allowed its release upon payment of ₹45,000, waiving all warehousing and related charges.

The Court also clarified that the appeal shall be restricted to the confiscation of the four iPhones only.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates