The Delhi High Court had released NRI’s Rolex wrist watch seized by the customs department and held that oral waiver of show cause notice and personal hearing in a standard form is not lawful.
The bench of Justice Prathiba M. Singh and Justice Dharmesh Sharma has observed that where the Department is relying upon the standard form undertaking signed by the Petitioner waiving the show cause notice and personal hearing. Clearly, the Department had the email address and the mobile number of the Petitioner. Thus, after not receiving a reply to the email dated 20th February, 2024, the Department could have issued a proper show cause notice within the time prescribed as per law. None of this was done. No hearing was also granted.
“Though the Petitioner ought to have disclosed the fact that he had submitted the documents in response to email dated 20th February, 2024, in a belated manner, however, the fact that show cause notice was not issued in this case cannot be ignored by the Court,” the bench said.
The Petitioner is an Indian passport holder, but is a permanent resident of Hong Kong. The Hong Kong permanent identity card has been attached with the petition. The Petitioner had arrived in India at IGI, Airport, New Delhi from Hong Kong on 16th October, 2023.
The Petitioner was intercepted by the Customs Department at the airport and after a search of his possessions, the Petitioner’s Rolex wrist watch was seized.
The Petitioner submitted that at the time of detention, a form for appraisal and assessment was signed by the Petitioner. Thereafter, an undertaking has also been recorded on 17th October 2023, wherein in standard format, show cause notice and personal hearing has been waived by the Petitioner.
Subsequently on 20th February, 2024, an email is stated to have been written by the Department to the Petitioner seeking a document of proof of Hong Kong residency. The Petitioner is stated to have replied to the said email on 2nd February, 2025 giving the necessary documents.
The Department submitted that the above details have not been disclosed in the petition. He submits that the Department did not receive any response to the email dated 20th February, 2024. In addition, the ld. SSC has handed over the appraisement report as per which the watch has been valued at Rs. 30,29,400. The Department is in the process of passing the final order in this matter.
The court directed the petitioner to visit the concerned warehouse personally to obtain the release of the goods. Whatever charges for storage would be payable, shall be paid by the Petitioner.
Case Details
Case Title: Mohamed Shamiuddeen Versus Commissioner Of Customs
Case No.: W.P.(C) 2030/2025
Date: 19th February, 2025
Counsel For Petitioner: Athar & Mr. S. Vijay Kant
Counsel For Respondent: Gibran Naushad, Sr. Standing Counsel
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