Legal principle

The mandatory return-of-goods consequence under Section 110(2) arises only where no notice under Section 124(a)—which may be oral at the request of the person concerned under the first proviso—is actually issued within the prescribed period, and it cannot be invoked on the mere absence of a written notice where the department specifically asserts that an oral show-cause notice was issued and the underlying facts are disputed and unsuitable for determination under Article 226.

Court decision

The Court dismissed the petition and refused the writ of mandamus for unconditional release of the gold bar, holding that since the Respondent specifically asserts, through its chart recording 19.12.2023 as the date of an oral show-cause notice, that the statutory requirement was complied with by an oral notice, the petitioner's claim for automatic release cannot be accepted merely on the absence of a written show-cause notice. Whether the oral proceedings of 19.12.2023 constituted compliance with Section 124(a), and the questions of the petitioner's ultimate liability, confiscability of the gold, and the validity and evidentiary value of her statement, were left open to the competent authority.

Facts

An Indian citizen petitioner, returning from Umrah in Saudi Arabia, arrived at Indira Gandhi International Airport, New Delhi on 19.12.2023 by Flight 6E-0195 and was intercepted by Customs after crossing the Green Channel. One yellow bar marked '100 grams fine gold 999.9', appearing to be made of gold, was detained/seized vide Detention Receipt No. DR/INDEL4/19-12-2023/003353 dated 19.12.2023, recording the reason as 'Green Channel Violation'. The same day a statement under Section 108 was recorded in which the petitioner admitted omission and commission, agreed to pay Customs duty with fine and penalty, and stated that she did not require any show-cause notice or personal hearing. The Respondent's tabulated chart records 19.12.2023 as the date of an oral show-cause notice under the proviso to Section 124, and it is not the Respondent's case that any Order-in-Original has been passed.

Key provisions

• Section 110(2), Customs Act, 1962 — Seizure of goods, documents and things