Passenger's Non-Appearance For Appraising Seized Goods Doesn't Stop Limitation For Issuing SCN: Delhi High Court Tells Customs
The Delhi High Court has made it clear that the Customs Department cannot exceed the limitation period prescribed for issuance of show cause notice after detention of goods, merely on the ground 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,“non-appearance for appraisement does not stop...
The Delhi High Court has made it clear that the Customs Department cannot exceed the limitation period prescribed for issuance of show cause notice after detention of goods, merely on the ground 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,
“non-appearance for appraisement does not stop the limitation for the 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 and afford a hearing to the person from whom goods were seized. Subject to complying with the formalities, a further extension for a period of six months can be taken by the Department.
In the case at hand, Petitioner's gold chain was detained by the Customs Department on 13th March 2024, upon his return to the country from Bangkok.
The Petitioner claimed that the article qualifies as his “personal effect” and in any case, the detention was vitiated due to non-issuance of show cause notice till date.
The Department contended that the Petitioner did not appear for appraisement of the detained gold chain. Hence, the SCN could not be issued.
The High Court however relied on Dhiren v. Commissioner of Customs (2025) where the non-appearance for appraisement as an explanation for delay was rejected.
“It is made clear that non appearance of a passenger for appraisement of detained goods is not a ground for withholding the issuance of an SCN in terms of Section 110 of the Customs Act, 1962,” it was held.
Thus, since non-issuance of the SCN by itself is a sufficient ground to release goods, the Court set aside the detention.
Appearance: Mr. Lalltaksh Joshi and Ms. Ananya Sanjiv Saraogi, Advs. for Petitioner; Mr. Avijit Dikshit, Standing Counsel
Case title: Gurpreet Singh Sonik v. Commissioner Of Customs
Case no.: W.P.(C) 13229/2025