Legal principle

A writ court will not direct unconditional return of detained goods for non-issue of a Section 124 notice within the Section 110(2) period where the petitioner approaches with substantial unexplained delay, suppresses the contemporaneous Section 108 statement, and raises disputed questions of fact; the petitioner must instead cooperate in the statutory process.

Court decision

The Delhi High Court dismissed the writ petition, declining unconditional release of the chain and leaving the parties to the statutory process; the competent authority is to complete the appraisement and further proceedings expeditiously, preferably within three months of the Petitioner extending cooperation, with the Petitioner directed to cooperate; the prayer for waiver of warehouse and handling charges was left open to the adjudicating authority, and the Court expressed no opinion on the ultimate merits of confiscation, duty, fine or penalty.

Facts

The Petitioner arrived at Terminal-3, IGI Airport, New Delhi from the UAE on 28.06.2023 and, after crossing the Green Channel, was intercepted by Customs, who recovered and detained one yellow metal chain appearing to be gold, weighing 58 grams, vide Detention Receipt No. DR/INDEL4/28-06-2023/002115 dated 28.06.2023 recording the reason as 'Green Channel Violation' and the value as 'to be appraised'. The same day she tendered a statement under Section 108 of the Customs Act, 1962 admitting that the article belonged to her, that she knew duty was payable, that she had intentionally not declared it, and stating she did not require a Show Cause Notice or personal hearing and was willing to pay duty, fine and penalty. The Petitioner instituted a writ petition on 21.01.2026, approximately 938 days after the detention, seeking unconditional return of the chain on the ground that no notice under Section 124 was issued within the period contemplated by Section 110(2), and also waiver of warehouse and handling charges.

Key provisions

• Section 124, Customs Act, 1962 — Issue of show cause notice before confiscation of goods etc