Delhi High Court Orders Release of Seized Gold Jewellery After Finding Customs Issued No Mandatory Notice Under Law

By Court Book • November 13, 2025

Delhi High Court orders unconditional release of seized gold after finding Customs failed to issue mandatory notice; bench cites Supreme Court’s ruling on strict timelines. - Sunil Kumar Gupta vs. Commissioner of Customs

The Delhi High Court on Friday felt almost impatient with the Customs Department as it dealt with a petition concerning seized gold jewellery. The bench of Justice Prathiba M. Singh and Justice Madhu Jain repeatedly asked why the department had not issued even a basic show-cause notice, a step the law makes absolutely mandatory.

Read in Hindi

Background

The case involved Sunil Kumar Gupta, who arrived from Dubai on 24 February 2024. At IGI Airport, officials detained his gold kada and chain weighing 160 grams. His statement was recorded the same day, but months passed without any notice or hearing from Customs.

His lawyer relied heavily on the Supreme Court ruling in Union of India v. Jatin Ahuja, calling it a “straightforward situation where goods must be returned.”

Court’s Observations

During the brief hearing, the bench made its irritation clear.

“Without a valid notice under Section 110 of the Customs Act, the law leaves no room for ambiguity,” the bench observed, hinting that the department had simply ignored statutory timelines.

The judges noted that the Supreme Court had already clarified the issue: if Customs seizes goods, it must either issue a notice within six months or formally extend the period. Failure to do so automatically triggers unconditional release.

Decision

Applying this settled law, the Court ordered immediate release of Gupta’s jewellery, except for payment of normal customs duty. It clarified that no fine, penalty or interest could be imposed.

“Warehousing charges will only be as per the rate on the date of detention,” the Court added.

Gupta has been asked to appear before Customs on 18 November 2025 at 11 AM to complete the paperwork.

Case Title:- Sunil Kumar Gupta vs. Commissioner of Customs

Case Type & Number: W.P.(C) 16869/2025

Date of Decision: 7 November 2025

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