Pre-Filled SCN Waiver Form Not Legally Valid: Delhi HC Orders Release of Jewellery Upon Payment [Read Order]
The Delhi High Court rules pre-filled SCN waiver form legally invalid, directs release of jewellery upon payment.
![Pre-Filled SCN Waiver Form Not Legally Valid: Delhi HC Orders Release of Jewellery Upon Payment [Read Order]](https://images.taxscan.in/h-upload/2025/08/01/2071987-show-cause-notice-taxscan.webp "Pre-Filled SCN Waiver Form Not Legally Valid: Delhi HC Orders Release of Jewellery Upon Payment [Read Order]")
In a recent ruling, the Delhi High Court held that a pre-filled waiver of the right to a show cause notice is not legally valid and cannot be used by the Customs Department to bypass the procedure required under law. The Court ordered the release of seized jewellery upon payment, despite an earlier confiscation order by Customs authorities. Laxmi Chauhan, the petitioner, had approached...
In a recent ruling, the Delhi High Court held that a pre-filled waiver of the right to a show cause notice is not legally valid and cannot be used by the Customs Department to bypass the procedure required under law. The Court ordered the release of seized jewellery upon payment, despite an earlier confiscation order by Customs authorities.
Laxmi Chauhan, the petitioner, had approached the Court after her jewellery comprising one gold chain and two gold bangles weighing around 200 grams was detained by Customs at IGI Airport, New Delhi, on 2 May 2023.
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The Customs Department later passed an order confiscating the jewellery and imposed a penalty of Rs. 1,15,000, relying on a waiver form signed by the petitioner which, according to them, gave up her right to receive a show cause notice or a personal hearing.
The petitioner’s counsel argued that the jewellery was her personal item, gifted by her mother-in-law, and was being worn during travel. They argued that no proper show cause notice was issued and the form relied upon by the department was a pre-filled waiver that the petitioner did not fully understand. The counsel submitted that such a form could not be treated as a valid waiver of statutory rights under the Customs Act.
The Customs Department’s counsel argued that the petitioner had voluntarily signed the waiver form and had also expressed willingness to pay the fine and penalty. They claimed that the confiscation and penalty orders were lawfully passed based on that waiver.
The division bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that a waiver of the right to a show cause notice cannot be enforced if it is based on a pre-filled form and not a properly explained or voluntary choice.
The court referred to the Amit Kumar v. Commissioner of Customs case, which held that legal rights under the Customs Act cannot be waived through unsigned or routine documentation lacking clarity or informed consent.
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The court found that no show cause notice had been issued within the statutory time of one year, and no personal hearing was granted. Considering that the petitioner had already been allowed to re-export the jewellery upon payment by the Appellate Authority, the court directed the department to release the jewellery after payment of the redemption fine and penalty.
The petitioner was permitted to collect the jewellery in person or through an authorised representative with proper written confirmation. The court also waived warehousing charges and disposed of the petition.
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