No SCN After One Year of Goods Detention under Customs Act

No SCN After One Year of Goods Detention under Customs Act, 1962

In a significant ruling impacting customs enforcement procedures, the Delhi High Court has held that a Show Cause Notice (SCN) under Section 124 of the Customs Act, 1962, cannot be issued after one year from the date of detention of goods, effectively setting a clear limitation on the exercise of customs powers beyond the statutory period.

The judgment was delivered by Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta in the case of Mohammad Arham vs. Commissioner of Customs [W.P.(C) 2760/2025] on March 19, 2025.

Case Background

The petitioner, Mohammad Arham, who was a minor at the time of incident, was intercepted at IGI Airport, New Delhi, on January 24, 2024, by Customs authorities. He was found in possession of two yellow gold bangles weighing 50 grams, while passing through the Green Channel. A detention receipt (No. 3605) was issued, but no formal seizure under Section 110 nor a show cause notice under Section 124 of the Customs Act was served upon him within the statutory period.

Over one year passed without any further legal action. In light of this delay, the petitioner approached the Delhi High Court seeking unconditional release of the detained goods.

Finding

The Court categorically held:

“Once the goods are detained, it is mandatory to issue a show cause notice and afford a hearing to the Petitioner. The time prescribed under Section 110 of the Customs Act, 1962, is six months, extendable by another six months, but not beyond that.”

Since no SCN was issued even after one year, the Court ruled that further detention was illegal and impermissible. The Court directed:

• The goods shall be appraised and released within four weeks.
• Appraisement must be done in the presence of the petitioner (now a major) or his authorized representative.
• No warehouse/storage charges shall be levied.

Also Read: Delhi High Court Holds No customs duty on personal jewellery: Upholds Passenger Rights Under Baggage Rules

Legal Implications

This judgment is a crucial precedent in customs jurisprudence as it reinforces statutory safeguards under Section 110 and Section 124 of the Customs Act:

• Section 110(2) mandates issuing a SCN within six months of seizure, extendable once for another six months with proper authorization.
• Beyond one year, no SCN can be legally issued, making any further detention without notice unlawful.

Also Read: Used Jewellery Worn By Passenger Falls Within Ambit Of Personal Effects, Same Is Exempted From Detention: Delhi High Court

Customs officers must ensure strict compliance with statutory timelines, failing which courts are likely to grant relief to aggrieved importers, travelers, and others facing arbitrary detentions of goods.

Conclusion

The ruling sends a strong message to customs enforcement agencies to adhere to due process and statutory time limits. It also empowers citizens to challenge prolonged detentions and procedural violations under customs law.

📚 Citation: Mohammad Arham v. Commissioner of Customs, W.P.(C) 2760/2025, Delhi High Court, decided on March 19, 2025.

Counsel for Parties

• For the Petitioner: Mr. Ashish Panday, Mr. Ajay Singh, Mr. Akshat Raghuvanshi, Ms. Kiran Pandey, and Mr. Anshuman Gupta (Advocates).
• For the Respondent: Mr. Harpreet Singh (Senior Standing Counsel), Ms. Suhani Mathur, and Mr. Jai Ahuja (Advocates).