New Delhi: Delhi High Court ruled that the customs department cannot exceed the time limit prescribed for issuance of a show-cause notice after detention of goods, on grounds that the person from whom goods were seized did not appear for appraisement. A division bench of Justices Prathiba M Singh and Shail Jain observed that non-appearance for appraisement cannot stop the limitation for issuance of the SCN in terms of Section 110 of Customs Act, 1962. Section 110 of the Customs Act prescribes a period of six months to issue a show-cause notice. An extension of six months can be taken by the department, subject to compliance with formalities. The petitioner’s gold chain weighing 100 grams was detained by the customs department on March 13, 2024, upon his return to the country from Bangkok. He claimed that the gold chain in question was part of his personal effects. The bench directed the release of the item seized, noting that the position of the law is clear to the effect that the detention of the gold chain is no longer tenable. The court relied on a verdict in another case, Dhiren v. Commissioner of Customs (2025), where non-appearance for appraisement as an explanation for delay was rejected. Referring to another order, the court said non-issuance of the SCN by itself is sufficient ground to direct the respondents to release the goods. Ranjit Singh Jaura, a resident of Amritsar stated that he is a gold smith since last 20 years and he had manufactured the gold chain of the petitioner. The court also directed the petitioner to pay 50% warehouse charges to the customs, as applicable on the date of the detention, March 13, 2024.
