Gold Chains Released as No Show Cause Notice Issued Within One Year Under Section 110 Customs Act

The HC directed the release of two gold chains weighing 199 grams detained by Customs, as no SCN was issued within the prescribed one-year period under Section 110 of the Customs Act. The court held the chains to be used personal effects exempt under the Baggage Rules, 2016, consistent with SC precedent. Since the petitioner, a foreign national, undertook to re-export the items and no show cause notice or order was passed, the detention was deemed impermissible. The gold chains were ordered released subject to verification, and the petition was disposed of accordingly.

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The Delhi High Court, through Justices Prathiba M. Singh and Rajneesh Kumar Gupta, addressed a petition seeking release of two gold chains (199 grams) detained by Customs. The Petitioner, an Uzbekistan national, undertook to re-export the jewellery, which he claimed were personal effects. The Customs Department had not issued any Show Cause Notice (SCN) or passed any order, despite the detention occurring over a year prior. Relying on settled precedents-including *Directorate of Revenue Intelligence v. Pushpa Lekhumal Tolani*, (2017) 16 SCC 93, *Saba Simran v. Union of India*, 2024:DHC:9155-DB, and *Mr Makhinder Chopra v. Commissioner of Customs*, 2025:DHC:1162-DB-the Court held that "used jewellery worn by the passenger would fall within the ambit of personal effects in terms of the Baggage Rules," exempting such items from detention. Further, the Court emphasized the mandatory procedural requirement under Section 110 of the Customs Act that a SCN must be issued within six months (extendable by six months) once goods are detained. Since no SCN was issued even after one year, the detention was held to be impermissible. Accordingly, the Court directed release of the gold chains for re-export, subject to verification and payment of storage charges. The Petitioner may collect the items personally or through an authorized representative upon proper communication. The writ petition was disposed of accordingly.

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