[Confiscation] No Provision For Waiver Of Show Cause Notice U/S 124 Of Customs Act: Delhi High Court

Section 124 stipulates that no order confiscating any goods shall be made unless the owner of the goods is given a notice informing him the grounds of confiscation, an opportunity of making a representation against confiscation and a reasonable opportunity of being heard in the matter.

A division bench of Justices Vibhu Bakhru and Swarana Kanta Sharma rejected the Department's contention that the woman had herself waived the notice. It observed,

“The seized goods are required to be returned, if a notice under Section 124 of the Act is not issued within the period as prescribed…Concededly, there is no provision for waiver of the notice as prescribed under the statute.”

The woman claimed she did not know about the whereabouts of the detained item and no show cause notice had since been issued to her for any further action under the Customs Act, despite multiple follow ups.

Customs on the other hand contended that an oral show cause notice under Section 124 of the Act was issued to the Petitioner but she had stated that she did not need any show cause notice or a personal hearing in the matter. Customs further submitted that Petitioner waived the right to make any representation under Section 124(b) of the Act.

The High Court rejected this contention of the Customs, noting that there was no averment in its counter affidavit to the effect that an oral show cause notice was issued to the petitioner, calling upon her to show cause why the item in question be not confiscated.

“Absent any such notice (whether in writing or in oral), we are unable to accept that the provisions of Section 124(a) of the Act are satisfied. It is also material to note that it is not the stand of the Customs Authorities in their counter affidavit that any such oral notice was issued. On the contrary, it is claimed that no such notice is required to be issued as the petitioner had waived the same. Concededly, there is no provision for waiver of the notice as prescribed under the statute,” it held.

The Court acceded that Section 110(1) of the Customs Act empowers the Customs Officers to seize such goods which, the proper officer has reason to believe, are liable for confiscation.

However, the Court said there is no provision for detaining the goods for an indefinite period.

“In the present case, it is not contested that the goods in question were in fact seized. However, no seizure memo has been prepared and the Customs Authorities have declined to release the item in question on the basis of the detention receipt,” it noted.

Accordingly, the High Court directed that the item seized by the Department is required to be returned forthwith, as the provisions of Section 124 of the Act have not been complied with.

Appearance: Advocates Amit Chadha, Sambhav Jain, Atin Chadha, Munisha Chadha, Harjas Singh Chhatwal and Saarthak Sethi for Petitioner; Senior standing counsel Shubham Tyagi for Customs

Case title: Ms Shubhangi Gupta v. Commissioner Of Customs & Ors.

Cae no.: W.P.(C) 10772/2024

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