Stopped at Airport by Customs? Delhi High Court Clarifies Your Legal Rights on Seizure & Notice

The seizure, confiscation, and detention of imported goods by the Customs Authority are governed by Chapter XIV of the Indian Customs Act, 1962 (hereinafter referred to as the “Act”). One of the most important steps to initiate the proceedings of confiscating imported goods is the issuance of a show cause notice (hereinafter referred to as “SCN”) at the green channel after determining that a person is carrying undisclosed goods or articles.

The Customs Authority has been following the procedure prescribed under Section 124 of the Act while issuing the SCN. For convenience, the section is reproduced below:

“124. Issue of show cause notice before confiscation of goods, etc.—No order confiscating any goods or imposing any penalty on any person shall be made under this Chapter unless the owner of the goods or such person—

(a) is given a notice in writing informing him of the grounds on which it is proposed to confiscate the goods or to impose a penalty;

(b) is given an opportunity of making a representation in writing within such reasonable time as may be specified in the notice; and

(c) is given a reasonable opportunity of being heard in the matter.

Provided that the notice and representation may, at the request of the person concerned, be oral.”

Arbitrary Practice by Customs Authorities

Although Section 124 of the Act follows the principle of natural justice, the Customs Authority began adopting arbitrary practices. Individuals were made to sign a standard printed form titled “Request for Release of Detained Goods,” unknowingly waiving their right to a written SCN and personal hearing.

Challenge Before Delhi High Court

This procedure was challenged before the Hon’ble Delhi High Court. The Court questioned the arbitrary detention of goods without issuing a proper show cause notice or granting an opportunity for personal hearing, holding it to be a violation of natural justice.

Landmark Judgment

The Division Bench comprising Justice Pratibha M. Singh and Justice Dharmesh Sharma, in Amit Kumar v. Commissioner of Customs, held that obtaining signatures on standard printed waivers was legally unsustainable.

The petitioner, arriving from Dubai, had goods detained at IGI Airport and was made to sign such a waiver form. The Court held that such waivers are not informed or conscious.

Violation of Natural Justice

The Court emphasized that natural justice must be followed in both letter and spirit. A proper written notice and meaningful opportunity of hearing are mandatory safeguards.

The Court clearly stated:

“Natural Justice is not merely lip-service. It has to be given effect and complied with in letter and spirit.”

Time Limit for Issuance of SCN

The Court held that the SCN under Section 124 must be issued within six months from the date of detention under Section 110 of the Act.

This period may be extended by another six months by the Commissioner with recorded reasons.

Consequences of Failure

If the Customs Authority fails to issue the SCN within the prescribed time, the detained goods must be released without penalty, though warehousing charges may apply.

Conclusion

This judgment reinforces the principle of natural justice and restricts arbitrary exercise of power by Customs Authorities. It ensures that individuals are given fair opportunity before any adverse action is taken.