W.P.(C)/4371/2025 of RAHUL KHOTANI Vs COMMISSIONER OF CUSTOMS

*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. SINGHJUSTICE RAJNEESH KUMAR GUPTAO R R

%07.04.20251.This hearing has been done through hybrid mode.

2.The present petition has been filed by the Petitioner- Rahul Khotaniunder Article 226 of the Constitution of India inter alia seeking release of thegold chain weighing 100 grams of the Petitioner seized by the Respondent-Commissioner of Customs vide Detention Receipt No. 4777 dated 7th July2024 (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 Delhion 7[th]July, 2024 by flight no. SG-12 and one gold chain of the Petitioner wasseized by the Customs Department after detention receipt.

4.The case of the Petitioner is that the gold chain which was seized bythe Customs Department is an old gold chain owned by him for the last 8 to10 years. Further, no show cause notice has also been issued till date in thismatter. Hence, the Petitioner prays for release of the gold chain.

5.Ld. Counsel for the Respondent submits that statement under Section

108 of the Customs Act, 1962 was given by the Petitioner at the time ofdetention of the gold chain. The Petitioner in the said statement stated that thesaid gold chain does not belong to him. Since there is discrepancy, ld.Counsel submits that the Petitioner may appear before the CustomsDepartment and the identity, etc., would be verified and subject to the saidverification, 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 AirCustoms Superintendent on 06.07.2024 to tender myvoluntary statement under Section 108 of the CustomsAct, 1962 in respect of above mentioned itemsrecovered from my possession. On being asked, I statethat I was intercepted by the Customs Officer after Ihad crossed the Green Channel and during thescanning of my baggage and DFMD, the above saiditem has been recovered from me.On being asked, Istate that the above mentioned recovered item doesnot belong to me.I admit my omission and commissionon my part; that I am well aware of the fact that thereis Customs duty on import of above Goods; that I willbe agreeing with the description, quantity and value tobe assessed by the department, and I am ready to paythe Customs duty along with fine and penalty asapplicable. I also do not need any Show Cause Noticeor personal hearing in the matter. I have tendered mystatement true and correct and understood the same. Ihave tendered the above statement without any duress,pressure or threat.”

7.The Court has perused the matter. The above statement appears to havebeen given in situation where the Petitioner had just arrived at the Airportand there may have been some confusion even in recording of the same.8.Once the goods are detained, it is mandatory to issue show cause

notice and afford hearing to the Petitioner. The time prescribed underSection 110 of the Customs Act, 1962 is period of six months and subjectto complying with the formalities, further period of six months extensionscan 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 thefirst six months period. Further, no extension has been obtained or intimatedto 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. Afterverification of his credentials and the fact that the gold chain is personaleffect of the Petitioner, the Customs Department shall release the gold chainsubject to payment of storage charges.

11.If the Customs Department is not satisfied that the gold chain is of apersonal effect, then after hearing the Petitioner, proper Order-in-Originalshall be passed.

12.Petition is disposed of in these terms. All pending applications, if any,are also disposed of.

PRATHIBA M. SINGH, J.

APRIL 7, 2025Rahul/Ck

RAJNEESH KUMAR GUPTA, J.