Customs | Traveller Entitled To Release Of Goods If SCN Not Issued Within Time, No Liability To Pay Fine Or Penalty: Delhi High Court

A division bench of Justices Prathiba M. Singh and Madhu Jain observed,

“It is the settled position in law, after Union of India &Anr. v. Jatin Ahuja (/2024) that without a SCN under Section 110 of the Customs Act, 1962, the goods of the Petitioner would be liable to be unconditionally released…In view of the above decision, the Petitioner is entitled to unconditional release of the goods subject to payment of applicable Customs Duty. No redemption fine or penalty would be liable to be paid by the Petitioner and no interest would be liable to be charged.”

The Court was dealing with a writ moved by a traveller returning from Dubai, seeking release of one gold kada and one gold chain, collectively weighing 160 grams, seized by the Department at the Delhi Airport.

Though Petitioner's statement was recorded by the officials, no Show Cause Notice (SCN) was issued.

He relied on Section 110 of the Customs Act which prescribes a period of six months for issuance of SCN. Further, subject to complying with certain formalities, a further extension of six months can be granted to the Department to issue SCN, in terms of Section 110(5).

In Mohammad Arham v. Commissioner Of Customs (2025), a coordinate bench of the Court had held that detention of goods by the Customs Department cannot continue beyond a period of one year, if a show cause notice was not issued to the assessee within such period.

In this backdrop, the High Court allowed Petitioner's plea and ordered release of gold but, directed him to bear warehousing charges.

Appearance: Mr. Aman Yadav, Adv. for Petitioner

Case title: Sunil Kumar Gupta v. Commissioner Of Customs

Citation: 2025 LiveLaw (Del) 1495

Case no.: W.P.(C) 16869/2025

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