The Delhi High Court has ruled that goods detained by the Customs Department cannot be held beyond a period of one year if a show cause notice (SCN) is not issued within the stipulated time. This decision was pronounced in the case of Mohammad Arham vs. Commissioner of Customs, emphasizing the importance of timely compliance under Section 110 of the Customs Act, 1962.
Background of the Case
The case was brought before the court by Mohammad Arham, who was a minor at the time of the incident. On January 24, 2024, he was intercepted at Terminal 3, IGI Airport, New Delhi, while passing through the Green Channel. During this interception, customs officials recovered two yellow bangles weighing 50 grams from him. The Customs Department subsequently detained the gold bangles under Detention Receipt No. 3605.
The petitioner contended that despite the passage of over a year, no show cause notice (SCN) had been issued by the department, making the continued detention of the seized goods unlawful.
Court’s Observations and Ruling
A division bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta examined the matter and referred to Section 110 of the Customs Act, 1962, which mandates that a SCN must be issued within six months of detention. The Act allows for an additional extension of six months under certain conditions. However, in this case, more than one year had elapsed, and no SCN was issued.
“Once the goods are detained, it is mandatory to issue a show cause notice and afford a hearing to the Petitioner.”
The court further clarified that since the statutory period had lapsed, the continued detention of the goods was unlawful.
“The one-year period itself has elapsed; thus, no show cause notice can be issued. The detention is therefore impermissible.”
Directions Issued by the Court
The Delhi High Court directed the Customs Department to take the following actions:
- Appraisement of Goods: The seized bangles must be appraised by the department before release.
- Release of Goods: The detained goods should be released to the petitioner within four weeks, subject to verification.
- Presence of Petitioner: Since the petitioner had attained majority by the time of the ruling, the appraisement process must be conducted either in his presence or through an authorized representative.
- Waiver of Warehouse Charges: The court waived off storage and warehouse charges, considering the prolonged delay caused by the customs authorities.
Legal Representation
- For the Petitioner: Mr. Ashish Panday, Mr. Ajay Singh, Mr. Akshat Raghuvanshi, Ms. Kiran Pandey, and Mr. Anshuman Gupta (Advocates).
- For the Respondent: Mr. Harpreet Singh (Senior Standing Counsel), Ms. Suhani Mathur, and Mr. Jai Ahuja (Advocates).
Case title: Mohammad Arham v. Commissioner Of Customs
Case no.: W.P.(C) 2760/2025
