Delhi High Court Directs Release of Seized Gold Jewellery in Customs Dispute – Key Legal Takeaways
In a significant ruling on May 6, 2025, the Delhi High Court delivered a judgment in W.P.(C) 5368/2025, setting aside an Order-in-Original passed by the Additional Commissioner of Customs, IGI Airport, and ordering the release of gold jewellery that had been detained from a passenger arriving from Dubai.
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The petitioner, a UAE resident, was intercepted at IGI Airport on March 3, 2024, while disembarking from Flight SG-12. Upon inspection, Customs authorities detained:
- One yellow metal kada (50 grams),
- One yellow metal chain (99 grams),
- Three iPhone 15 Pro (128 GB) devices.
The total assessable value of the goods was stated to be ₹10,39,144 for the gold items and ₹2,48,006 for the phones.
The Additional Commissioner of Customs, in an order dated March 6, 2025, directed absolute confiscation of the gold items and allowed redemption of the iPhones upon payment of a redemption fine of ₹32,000 and applicable customs duties. A penalty of ₹1,29,000 was also imposed under Sections 112(a) and 112(b) of the Customs Act, 1962. The petitioner was declared an “ineligible passenger” under Notification No. 50/2017-Cus and Baggage Rules, 2016.
Challenging the order under Articles 226 and 227 of the Constitution, the petitioner argued that the seized jewellery constituted personal effects and that the impugned order was passed in violation of natural justice principles — notably, without issuance of a Show Cause Notice or the opportunity for a personal hearing.
The Division Bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta found merit in the petitioner’s submissions, relying in part on precedent including Mr. Makhinder Chopra v. Commissioner of Customs, which emphasized the mandatory nature of issuing a Show Cause Notice before confiscation.
Observing that the procedural deficiencies could not be ignored, the Court ordered:
- Release of the gold kada and chain without imposition of storage charges,
- Payment of redemption fine and applicable storage charges for the iPhones,
- Completion of the release process within two weeks.
This ruling is a reminder that customs authorities must strictly comply with due process requirements when exercising their adjudicatory powers, especially in baggage-related confiscations where personal effects are concerned.
The decision is expected to influence future customs enforcement actions and reinforce passenger rights under the Baggage Rules and the Constitution.
Petitioner represented by the esteemed Legum Attorney Team including advocates Mr. Viraat Tripathi, Mr. Ashish Panday, Mr. Ajay Singh, Mr. Akshat Raghuvanshi, and Mr. Pushpank Pandey.
