New Delhi, March 2, 2025 – In a series of landmark judgments, the Delhi High Court has ruled in favor of tourists against the Customs Department, emphasizing due process and natural justice in the confiscation of goods. The rulings set crucial legal precedents on baggage regulations, waivers, and the disposal of seized items.
Rolex Watch Case: Unlawful Waiver of Rights
In Mohamed Shamiuddeen v. Commissioner of Customs, the High Court ordered the release of an NRI’s Rolex wristwatch that had been seized by customs officials. The bench, comprising Justice Prathiba M. Singh and Justice Dharmesh Sharma, held that an oral waiver of the show cause notice and personal hearing in a standard form is unlawful. The Court noted that the Customs Department had the petitioner’s contact details but failed to issue a proper show cause notice after receiving no response to its initial email. The judgment reinforces the necessity for proper legal procedures in confiscation cases.
Seized Gold Case: Compensation for Unlawful Disposal
The Court delivered another significant ruling in Gor Sharian v. The Commissioner of Customs, where it found that the Customs Department disposed of a Russian national’s detained gold without informing the petitioner. The bench directed the department to pay the petitioner the full market value of the detained gold. The judgment highlights the importance of transparency and due process in handling seized assets.
Customs Department Ordered to End Unlawful Undertakings
In Mr. Makhinder Chopra v. Commissioner of Customs, New Delhi, the Delhi High Court took a firm stance against the practice of making tourists sign standard undertakings waiving their right to a show cause notice and personal hearing. The Court ruled that such practices violate Section 124 of the Customs Act and directed the Customs Department to discontinue this practice immediately.
Gold Chain Case: Limited Applicability of Baggage Rules
In another ruling in favor of foreign tourists, the Court ruled that the Baggage Rules have limited applicability to them. In Mr. Makhinder Chopra v. Commissioner of Customs, New Delhi, the bench ordered the release of a Russian national’s gold chain, stating that jewelry is considered part of personal effects and should not have been confiscated.
Author’s Opinion
These rulings collectively reinforce the necessity for the Customs Department to adhere to principles of natural justice, ensuring fair treatment of travelers. The judgments serve as a warning to customs officials against procedural lapses and underscore the importance of lawful confiscation practices in accordance with the Customs Act.
With these decisions, the Delhi High Court has set a strong precedent in protecting the rights of international travelers and non-resident Indians, ensuring due process is followed in all cases of goods seizure.
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