Statement Made Before Customs Officer U/S 108 Customs Act Over Goods Seizure Not Admissible In Evidence: Delhi High Court

The Delhi High Court has held that statements made by an assessee to the Customs Department under Section 108 of the Customs Act 1962, upon seizure of its goods, is not admissible as evidence in court of law.“Statements under Section 108 would not be admissible in evidence,” said a division bench of Justices Prathiba M. Singh and Shail Jain.Section 108 deals with the power of customs officers to summon persons to give evidence and produce documents. It stipulates that any Gazetted Officer of customs shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making under the Act.The Court was dealing with a plea for release of Petitioner's gold bar weighing 117 grams.Opposing the plea, the Department tendered the statement of the Petitioner, under Section 108 of the Customs Act, as per which Petitioner admitted that the gold bar did not belong to him as he had not purchased the said goods.The Department submitted that the Petitioner had clearly stated that the gold bar does not belong to him and as such, the gold bar is liable for confiscation.It was further submitted that the gold bar consists of foreign marking and releasing it to the Petitioner would be contrary to law. It was further contended that no relief can be granted unless the Petitioner shows any documents to support the possession and ownership of the gold bar.The High Court observed that Statements under Section 108 would not be admissible. Nonetheless, it observed that the statement reveals that a factual inquiry would be required in the matter.As such, the Court ordered the Petitioner to appear before the Customs Department which shall pass an order, after affording a hearing to the Petitioner.“it shall be borne in mind that under Section 110 of the Customs Act, 1962, if the SCN has not been issued, the goods are liable to be returned to the person from whose possession they were seized, in terms of the decision in Jatin Ahuja judgment,” the Court added and disposed of the matter.Appearance: Ms. Richa Kumari, Adv. for Petitioner; Ms. Anushree Narain, SSC for RespondentCase title: Gulfam v. Commissioner Of CustomsCitation: 2025 LiveLaw (Del) 1595Case no.: W.P.(C) 15791/2025Click here to read order

Statement Made Before Customs Officer U/S 108 Customs Act Over Goods Seizure Not Admissible In Evidence: Delhi High Court

Kapil Dhyani

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