Delhi High Court – Orders
Rahul Khotani vs Commissioner Of Customs on 7 April, 2025
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~59
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4371/2025
RAHUL KHOTANI .....Petitioner
Through: Mr. Ravi Rathore, Ms. Richa Kumari,
Mr. Maroof Khan, Mr. Yatin Bhutani
& Mr. Pawan, Advs.
versus
COMMISSIONER OF CUSTOMS .....Respondent
Through: Ms. Anushree Narain, SSC with Mr.
Ankit Kumar, Adv.
CORAM:
JUSTICE PRATHIBA M. SINGH
JUSTICE RAJNEESH KUMAR GUPTA
ORDER
% 07.04.2025
1. This hearing has been done through hybrid mode.
2. The present petition has been filed by the Petitioner- Rahul Khotani
under Article 226 of the Constitution of India inter alia seeking release of the
gold chain weighing 100 grams of the Petitioner seized by the Respondent-
Commissioner of Customs vide Detention Receipt No. 4777 dated 7th July
2024 (New Detention Receipt Nos. 43676 and 36206 dated 7th October 2024
and 7th November 2024 respectively) (hereinafter, ‘detention receipt’)
3. According to the Petitioner, he arrived at the IGI Airport, New Delhi
on 7th July, 2024 by flight no. SG-12 and one gold chain of the Petitioner was
seized by the Customs Department after a detention receipt.
4. The case of the Petitioner is that the gold chain which was seized by
the Customs Department is an old gold chain owned by him for the last 8 to
10 years. Further, no show cause notice has also been issued till date in this
matter. Hence, the Petitioner prays for release of the gold chain.
5. Ld. Counsel for the Respondent submits that a statement under Section
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108 of the Customs Act, 1962 was given by the Petitioner at the time of
detention of the gold chain. The Petitioner in the said statement stated that the
said gold chain does not belong to him. Since there is a discrepancy, ld.
Counsel submits that the Petitioner may appear before the Customs
Department and the identity, etc., would be verified and subject to the said
verification, the gold chain shall be released.
6. The statement under Section 108 reads as under:
“On being asked, I, Mr. Rahul Khotani (DOB:-
10.10.1985) state that I have appeared before Air
Customs Superintendent on 06.07.2024 to tender my
voluntary statement under Section 108 of the Customs
Act, 1962 in respect of above mentioned items
recovered from my possession. On being asked, I state
that I was intercepted by the Customs Officer after I
had crossed the Green Channel and during the
scanning of my baggage and DFMD, the above said
item has been recovered from me. On being asked, I
state that the above mentioned recovered item does
not belong to me. I admit my omission and commission
on my part; that I am well aware of the fact that there
is Customs duty on import of above Goods; that I will
be agreeing with the description, quantity and value to
be assessed by the department, and I am ready to pay
the Customs duty along with fine and penalty as
applicable. I also do not need any Show Cause Notice
or personal hearing in the matter. I have tendered my
statement true and correct and understood the same. I
have tendered the above statement without any duress,
pressure or threat.”
7. The Court has perused the matter. The above statement appears to have
been given in a situation where the Petitioner had just arrived at the Airport
and there may have been some confusion even in recording of the same.
8. Once the goods are detained, it is mandatory to issue a show cause
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notice and afford a hearing to the Petitioner. The time prescribed under
Section 110 of the Customs Act, 1962 is a period of six months and subject
to complying with the formalities, a further period of six months extensions
can be taken by the Customs Department for issuing the show cause notice.
In the present case, it is noticed that there is no show cause notice within the
first six months period. Further, no extension has been obtained or intimated
to the Petitioner as per the submissions made today.
9. The Petitioner prays for release of the gold chain in his favour.
10. Let the Petitioner appear before the Customs Department. After
verification of his credentials and the fact that the gold chain is a personal
effect of the Petitioner, the Customs Department shall release the gold chain
subject to payment of storage charges.
11. If the Customs Department is not satisfied that the gold chain is of a
personal effect, then after hearing the Petitioner, a proper Order-in-Original
shall be passed.
12. Petition is disposed of in these terms. All pending applications, if any,
are also disposed of.
PRATHIBA M. SINGH, J.
RAJNEESH KUMAR GUPTA, J.
APRIL 7, 2025
Rahul/Ck
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 14/04/2025 at 21:23:12