Legal principle

A mere printed waiver or unilateral recital in a Section 108 statement cannot by itself satisfy the mandatory requirements of Sections 110(2) and 124 of the Customs Act; the validity of any oral notice and the consequence of non-compliance with Section 110(2) must be determined by the competent adjudicating authority in accordance with Union of India v. Jatin Ahuja, and pendency of litigation does not permit indefinite retention of the goods.

Court decision

Both writ petitions were dismissed and unconditional release was refused at this stage. The petitioners were directed to appear before the competent adjudicating authority on 26.09.2026, where each must be given a reasonable opportunity of personal hearing and adjudication completed within six weeks of appearance. The authority must independently determine whether the Department's proceedings and documents constituted a valid oral notice under the first proviso to Section 124 and whether Section 110(2) was satisfied; detention/warehouse charges abide that determination. The dismissal must not be treated as affirming the Department's contention that mere recitals in the statements satisfied Sections 110(2) and 124.

Facts

Two passengers were intercepted at IGI Airport, New Delhi after crossing the Green Channel: Mohammad Sadiq (Indian citizen, 25.02.2022, from Saudi Arabia) with three yellow-metal bars weighing 253.2 grams, and Ulugbek Zokirov (Uzbek national, 24.02.2024) with a plastic box of assorted jewellery weighing 230 grams appearing to be gold, detained under Detention Receipts recording 'Green Channel Violation'. Section 108 statements were recorded in which each petitioner allegedly admitted non-declaration, disclaimed ownership of the goods, and waived Show Cause Notice and personal hearing. The goods remain with Customs and no Order-in-Original has been passed in either case; the petitioners sought release of the gold without payment of detention or warehouse charges. Sadiq alleged he was made to sign pre-prepared documents and that CCTV footage was not produced; Zokirov alleged he knows only Uzbek and signed documents without a translator.

Key provisions

• Section 110(2), Customs Act, 1962 — Seizure of goods, documents and things
• Section 124, Customs Act, 1962 — Issue of show cause notice before confiscation of goods etc