Delhi High Court Rules No Waiver of Notice Under Section 124(A) of Customs Act for Confiscation of Goods; Orders Return of Luxury Item.

The Delhi High Court ordered the return of a luxury item taken from an Overseas Citizen of India by Customs officials. The court reminded the department that there is no rule allowing them to skip the Notice required under Section 124(a) of the Customs Act. The court was reviewing a writ petition asking the Revenue Department to return items that were allegedly taken unlawfully. Justices Vibhu Bakhru and Swarana Kanta Sharma stated, “There is no mention in the counter affidavit that an oral show cause notice was given to the petitioner to explain why the item should not be confiscated. Without such a notice, whether written or oral, we cannot agree that Section 124(a) of the Act has been followed. It is also important to note that the Customs Authorities did not claim in their counter affidavit that any oral notice was issued. Instead, they argued that no notice was needed because the petitioner had waived it. However, there is no rule allowing for such a waiver as per the law.”

The Petitioner was represented by Advocate Amit Chadha, while SSC Shubham Tyagi represented the Respondent. The Petitioner, who holds an Overseas Citizen of India (OCI) Card, claimed that when she arrived in Delhi with her husband and child, Customs Officers stopped her. At that time, she was wearing a luxury brand watch, which was taken by the authorities, even though it was a personal item. She also mentioned that she does not know where the detained item is and has not received any show cause notice for further action under the Customs Act, 1962.

She mentioned that she had not received any communication from the Customs Authorities about any further actions regarding the detained item. It was also stated that her representative visited the Customs Department several times, but the Department did not respond.

The Court noted that the counter affidavit clearly shows that a show cause notice under Section 124(a) of the Act was not issued to the Petitioner. It also pointed out that while it was claimed the Petitioner was asked to provide proof of purchase and payment for the detained item, there was no written communication sent to her. The Court dismissed the Revenue Counsel’s argument that a show cause notice under Section 124 does not need to be in writing and can be given orally, calling it ‘unmerited’. The Court emphasized that the requirements of Section 124(a) of the Customs Act were not followed.

The court stated, “Given the circumstances of this case, the item seized by the Revenue must be returned immediately since the requirements of Section 124 of the Act were not met.” Therefore, the petition was granted.

Cause Title: Ms. Shubhangi Gupta vs. Commissioner of Customs & Ors.