Waiver of SCN and Personal Hearing in Printed Form for Release of Goods by Customs Dept Invalid u/s 124: Delhi HC Directs Release [Read Order]
Delhi HC held that Customs cannot Issue Printed Form to Waive SCN and Personal Hearing for Release of Goods
The New Delhi High Court held that the Customs Department cannot treat the printed form for release of goods containing a waiver of Show Cause Notice (SCN) or personal hearing, signed for seeking release of detained goods, as a valid waiver under section 124 of the Customs Act, 1962. The court directed to release the detained goods to the petitioner.
The petitioner, Amit Kumar, has filed a writ petition seeking release of detained goods under section 110(2) of the Customs Act, 1962. The petitioner arrived at IGI Airport, New Delhi, on 3rd March 2024. While crossing the Green Channel, eight goods of the petitioner were detained by the Customs Officials, valued at approximately ₹20 Lakh.
The counsel for the petitioner, S.Vijay Kath, contended that no SCN and no opportunity of being heard was provided to the petitioner. It was also contended that SCN has to be issued within a period of six months, which was not done by the respondent under section 124 of the Act.
The counsel for the respondent, Gibran Naushad, submitted that an SCN can be oral according to the first proviso of section 124 of the Act. It was further submitted that the petitioner had signed an undertaking that he did not want a written SCN or a personal hearing.
It was also submitted that, except for the gold, other articles are be permitted to be redeemed upon payment of ₹85,000.
Justice Prathiba M.Singh and Justice Dharmesh Sharma, observed that a request for release of goods made by a person whose goods have been detained cannot be expected to read and understand a printed form where waiver of SCN and personal hearing has been recorded.
The court observed in the case of Mohammad Zaid Saleem vs. The Commissioner of Customs (2019), which held that if SCN is not given within six months of the seizure, the goods would be liable to be released.
The court held that a printed waiver of SCN and a printed statement made in the request for release of goods cannot be considered or deemed to be an oral SCN under section 124 of the Act.
Accordingly, the court directed to release the detained goods to the petitioner and held that the storage charge shall be borne by the petitioner. The court referred the matter to the Central Board of Indirect Taxes and Customs (CBIC) for undertaking a review of various forms, including detention receipts, request for appraisal, and connected documents.
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