Revenue must immediately release seized gold ornaments as Section 124 show cause notice requirement not followed Delhi HC directed Revenue to immediately release seized gold ornaments to petitioner as Section 124 provisions were not complied with, specifically the ...
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Revenue must immediately release seized gold ornaments as Section 124 show cause notice requirement not followed
Delhi HC directed Revenue to immediately release seized gold ornaments to petitioner as Section 124 provisions were not complied with, specifically the requirement to issue show cause notice before confiscation. The petition was allowed and Revenue was ordered to return the items forthwith. Court noted petitioner's intention to re-export the ornaments and directed her to apply for re-export, which would be considered according to law.
Issues: Detention of gold ornaments, nationality discrepancy, issuance of show cause notice, compliance with Customs Act, 1962.
Analysis:
The petitioner, a citizen of Vanuatu with an OCI card, was detained at IGI Airport with a Patek Philippe watch. She sought release of the watch and challenged the detention receipt as illegal and unfair. She claimed ignorance of the watch's whereabouts and the absence of a show cause notice under the Customs Act, 1962.
The Revenue confirmed the detention but stated the petitioner's voluntary statement waived the need for a show cause notice. Despite visits and emails seeking release, no response was received by the petitioner. The Revenue failed to prepare a seizure memo, and the detention receipt was the sole basis for withholding the item.
The court noted the absence of a written show cause notice, crucial under Section 124 of the Act, and rejected the Revenue's claim of an oral notice. Citing Section 110(2), the court emphasized the need for timely notice issuance, which was not met in this case. Referring to precedent, the court ordered the immediate release of the item due to non-compliance with statutory requirements.
The judgment directed the Revenue to release the detained item promptly and allowed the petitioner to apply for re-export. The court emphasized adherence to the law in considering the re-export request, concluding the case in favor of the petitioner based on the failure to comply with the Customs Act, 1962.
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