Personal Jewellery Worn by Traveller Not Seizable HC Cites Natural Justice:

Personal Jewellery Worn by Traveller Not Seizable HC Cites Natural Justice

The assessee, an Indian passenger returning from Umrah, was stopped at IGI Airport, where customs officials confiscated her two gold bangles weighing 117 grams. The jewellery was valued at Rs. 6.94 lakh. Customs issued an Order-in-Original, declaring it absolutely confiscated under Sections 111(d), (i), (l), and (m) of the Customs Act, 1962, and also imposed a Rs. 70,000 penalty under Section 112(a).

An appeal was filed by the assessee, which resulted in partial relief, converting the confiscation to a redemption fine of Rs. 70,000, but the seizure itself was upheld.

Issue Raised: Whether the Customs Department can lawfully seize a returning traveller's personal jewellery using a pre-printed waiver form in lieu of a legitimate show cause notice and in-person hearing.

HC Held: The Court observed that no valid SCN had been issued and that the printed waiver obtained by customs was legally invalid. It referred to binding precedents in Amit Kumar, Makhinder Chopra, and Saba Simran, which established that used personal jewellery worn by travellers cannot be confiscated without compliance with Section 124 and the principles of natural justice. 

The HC quashed the seizure and the associated orders, holding that the printed SCN waiver violated Section 124 of the Customs Act and that the gold bangles were personal effects exempt from seizure. The Court also directed the Customs to release the jewelry within two weeks.

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