HC directs Customs Department to comply with Order-in-Appeal dated 15 July 2025, allowing release of seized gold jewellery on payment of redemption fine and reduced penalty.
Meetu Kumari | Nov 3, 2025 |
Delhi HC Directs Customs to Implement Appellate Order Allowing Release of Seized Gold Jewellery
A writ petition was instituted under Article 226 of the Constitution of India, seeking implementation of an Order-in-Appeal dated 15 July 2025 given by the Commissioner (Appeals), Customs, allowing the release of the gold jewellery seized at the airport on the payment of a redemption fine and a lesser penalty. The matter stemmed from an interception on 18 May 2024, when Customs officers intercepted the traveller and seized one gold kada and one gold chain, which weighed 52 grams (assessable value Rs. 3,55,874/-)
In sequel to the seizure of the articles mentioned above, Assistant Commissioner of Customs on 19 December 2024 passed an Order-in-Original, whereby the seized articles were ordered to be completely confiscated and a penalty of Rs. 55,000/- was also imposed, under Sections 112(a) and 112(b) of the Customs Act, 1962. In appeal, the Commissioner (Appeals) partly set aside the order and permitted release of the gold on payment of a redemption fine of Rs. 35,000/- under Section 125 of the Act, along with applicable duty, while reducing the penalty to Rs. 35,000/-.
Issue Raised: Whether the Customs Department was obliged to implement a final and uncontested Order-in-Appeal permitting release of seized goods after expiry of the statutory period for challenge.
HC’s Decision: The Court noted that more than three months had elapsed since the passing of the Order-in-Appeal and that the Customs authorities had not reported any appeal against it. Holding that no impediment remained to its implementation, the Court instructed that the Order-in-Appeal from the date of 15 July 2025 be implemented within two weeks.
The court also ordered that warehouse charges would be charged as at the rates applicable as of the date of detention and be deducted by 50 per cent. The petitioner was also directed to present himself before the competent authority for compliance on 3 November 2025. A nodal officer was appointed to ensure the performance of the Court’s order. The case was disposed of in these terms, and pending applications were terminated.
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