SCNs Issued within Limitation Period: Delhi HC upholds Customs Action on Seized Gold Chains u/s 110 of Customs Act

The petitions were filed by five individuals, Ms Aarti Mangla Aggarwal, Mr Manish Aggarwal, Ms Shilpi Gupta, Mr Abhishek Gupta, and Mr Rishi Goel, seeking the release of seven gold chains seized by Customs officials at the Indira Gandhi International Airport, New Delhi.

The seizure took place on 15th June 2024, when the Petitioners arrived from Dubai. Customs officers detained the gold chains on the ground that they had not been declared upon arrival as required under customs law.

According to the Petitioners, the initial panchnama was incorrectly drawn in the names of only two passengers, even though the ornaments were collectively possessed by all.

It was argued that the Show Cause Notices were not issued within one year of the seizure date, having been dispatched only on 20th June 2025, and thus were barred by limitation under Section 110 of the Customs Act. The Petitioners also expressed apprehension that the seized gold might have been disposed of without due process.

The Customs Department, represented by its Counsel, refuted these allegations and produced documentary proof, including photographs of the seized items and entries from the official dispatch register. The Department submitted that the SCNs were prepared and dispatched on 10th June 2024, well within the statutory period of one year from the date of detention.

It was further contended that the gold chains did not qualify as “personal effects” and were subject to declaration and payment of duty at the time of arrival. The Department also clarified that the seized gold had not been disposed of and remained in safe custody.

Upon reviewing the records, the Court observed that the dispatch register maintained by the Customs Department reflected timely issuance of SCNs and found no reason to doubt its authenticity. The Bench noted that under Section 110(2) of the Customs Act, notices must be issued within six months, extendable by another six months, from the date of seizure. The evidence produced established compliance with the statutory timeline.

The Court further observed that since all Petitioners were Indian nationals returning from abroad with identical gold chains, the items could not be treated as personal effects exempt from declaration.

The Petitioners were under a legal duty to declare the same at the red channel and pay the applicable customs duty. During proceedings, counsel for the Petitioners stated that they were willing to pay the requisite duty and had already filed replies to the SCNs.

In conclusion, the Division bench of Justice Prathiba M. Singh and Justice Shail Jain held that the SCNs were issued within the limitation prescribed under Section 110 and that the Customs Department had acted in accordance with law.

The Court directed the Department to grant a personal hearing to the Petitioners on 9th October 2025, consider their willingness to pay the duty, and pass appropriate orders. With these directions, the petitions were disposed of, leaving all rights and remedies open to the parties.