2025 (4) TMI 197 - HC - Customs

Gold Bangle Must Be Released After Customs Failed to Issue Show Cause Notice Within Six-Month Period Under Section 110

The HC ruled in favor of the petitioner, directing the release of a 76-gram gold bangle seized by Customs Authorities upon the petitioner's arrival from ... Seeking release of the gold bangle of the Petitioner which has been seized - Time limitation to issue SCN - HELD THAT:- Once the goods are detained, it is mandatory to issue a show cause notice and afford a hearing to the Petitioner. The time prescribed under Section 110 of The Customs Act, 1962, is a period of six months and subject to complying with the formalities, a further extension for a period of six months can be taken by the Department for issuing the show cause notice. In this case, six months’ period has elapsed. No intimation is stated to have been sent to the Petitioner regarding a further extension of six months having been obtained by the Customs Department. Thus, the detention would no longer be permissible. The time for issuance of show cause notice has already lapsed and in the opinion of this Court, the goods can no longer be detained. The detention is set aside. The Department is directed to return the gold item to the Petitioner within a period of four weeks without charging any storage charges - Petition disposed off. In the case before the Delhi High Court, the petitioner, Kamal Arora, filed a petition under Article 226 of the Constitution of India seeking the release of a gold bangle seized by the Customs Authorities. The petitioner, an Indian citizen, had traveled from Bangkok to New Delhi, where his gold kada weighing 76 grams was confiscated, and a detention receipt was issued on April 30, 2024.The court noted that under Section 110 of The Customs Act, 1962, it is mandatory to issue a show cause notice and provide a hearing to the petitioner within six months of the detention. This period can be extended by another six months, subject to compliance with formalities. However, in this case, the six-month period had elapsed without any show cause notice being issued or any intimation of an extension being communicated to the petitioner.The court held that 'the detention would no longer be permissible' as the time for issuing a show cause notice had lapsed. Consequently, the court set aside the detention and directed the Customs Department to return the gold item to the petitioner within four weeks, without imposing any storage charges. The petition was thereby disposed of, along with any pending applications.