The Delhi High Court has directed the Customs Department to release the gold kada belonging to an Indian tourist, which was confiscated upon his arrival in India from the Republic of Mali. The petitioner, Mr. Sai Kiran Goud Tirupathi, filed a writ petition challenging the confiscation and sought the return of his gold jewellery.
Background of the Case
Mr. Sai Kiran Goud Tirupathi, an Indian citizen, returned from Mali and landed at Indira Gandhi International Airport, New Delhi, on March 12, 2024. He was wearing a gold kada weighing 50 grams, which was seized by the Customs Department. The kada was appraised and valued at Rs. 2,85,079/- with an average purity of 986.
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The petitioner contended that his kada was a personal effect as it had his name "SAI" engraved on it, thereby qualifying for an exemption from customs duty. However, despite no formal show cause notice being issued, the jewellery remained detained for over a year, prompting the petitioner to seek judicial intervention for its release.
Customs Department’s Argument
The Customs Department, represented by Senior Standing Counsel Mr. Harpreet Singh, argued that the petitioner had voluntarily waived his right to a show cause notice and personal hearing. The department cited the Order-in-Original dated January 30, 2025, which confirmed the absolute confiscation of the kada and imposed a penalty of Rs. 45,000/- under Sections 112(a) and 112(b) of the Customs Act, 1962.
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Petitioner’s Contention
The petitioner, through his counsel, refuted the claim and asserted that he never received the final confiscation order. He argued that the alleged waiver of his rights was not a voluntary decision but rather a standardized procedure imposed by customs officials.
Court’s Observations
The Delhi High Court reviewed the case and noted that the waiver of a show cause notice and personal hearing in a standard form was legally impermissible. The bench, comprising Justices Prathiba M. Singh and Rajneesh Kumar Gupta, referred to the precedent set in Makhinder Chopra v. Commissioner of Customs (2025), which held that such waivers violate principles of natural justice.
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The Court observed:
"It appears to the Court that even in the present case it is a standard form waiver. Under these circumstances, the order in original cannot be sustained and the same is accordingly quashed. The gold Kada be released, however, subject to payment of storage charges."
Final Judgment
Considering the circumstances and past rulings, the court quashed the confiscation order and directed the Customs Department to release the seized kada within four weeks. However, the release is subject to verification of the petitioner’s identity and the payment of applicable storage charges.
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Key Directives by the Court:
- The petitioner must approach the Customs Department for the release of the kada.
- The Customs Department must verify the petitioner's identity before returning the jewellery.
- The kada should be released within four weeks upon payment of storage charges.
This judgment reaffirms the legal principle that a waiver of a show cause notice must be made with clear consent and cannot be a blanket procedural requirement imposed on passengers. The court has further directed the Customs Department to ensure compliance with natural justice principles in future confiscation cases.
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Case title: Sai Kiran Goud Tirupathi v. Commissioner Of Customs
Case no.: W.P.(C) 3347/2025
