2024 (11) TMI 620 - HC - Customs

Release of seized gold ornaments - Issue of show cause notice before confiscation of goods, etc - HELD THAT - The item seized by the Revenue is required to be returned forthwith as the provisions of Section 124 of the Act have not been complied with. In view of the above, the present petition is allowed and the Revenue is directed to forthwith release the item in question to the petitioner. Before concluding, it is also necessary to note that it is the petitioner s case that she desires to re-export the item in question and to carry the same back. In this regard, the petitioner shall apply for re-export of the item, which shall be considered in accordance with law.

Summary

Issues:
Detention of gold ornaments, nationality discrepancy, issuance of show cause notice, compliance with Customs Act, 1962.

Analysis:

The petitioner, a citizen of Vanuatu with an OCI card, was detained at IGI Airport with a Patek Philippe watch. She sought release of the watch and challenged the detention receipt as illegal and unfair. She claimed ignorance of the watch's whereabouts and the absence of a show cause notice under the Customs Act, 1962.

The Revenue confirmed the detention but stated the petitioner's voluntary statement waived the need for a show cause notice. Despite visits and emails seeking release, no response was received by the petitioner. The Revenue failed to prepare a seizure memo, and the detention receipt was the sole basis for withholding the item.

The court noted the absence of a written show cause notice, crucial under Section 124 of the Act, and rejected the Revenue's claim of an oral notice. Citing Section 110(2), the court emphasized the need for timely notice issuance, which was not met in this case. Referring to precedent, the court ordered the immediate release of the item due to non-compliance with statutory requirements.

The judgment directed the Revenue to release the detained item promptly and allowed the petitioner to apply for re-export. The court emphasized adherence to the law in considering the re-export request, concluding the case in favor of the petitioner based on the failure to comply with the Customs Act, 1962.