Delhi High Court Orders Release of Confiscated Gold to Petitioner Mushlina

Customs Department Criticized for Delays and Lack of Communication in Appellate Proceedings

In a significant ruling by the Delhi High Court, the bench comprising Justices Prathiba M. Singh and Shail Jain has ordered the Customs Department to release two gold kadas belonging to petitioner Mushlina, which were confiscated at the Indira Gandhi International Airport, New Delhi. The court's decision comes after the Customs Department failed to comply with an earlier Order-in-Appeal that allowed the redemption of the confiscated goods.

The case dates back to November 19, 2022, when Mushlina traveled from Riyadh to Delhi and was intercepted by customs officials who seized her gold kadas, weighing 205 grams. The initial adjudication by the Customs Department led to the absolute confiscation of the gold and a penalty of Rs. 1,00,000 was imposed on Mushlina. However, upon appeal, the Commissioner (Appeals) allowed the redemption of the goods upon payment of a fine and applicable duty.

Despite the Appellate Authority's decision, the Customs Department neither implemented the order nor informed Mushlina of any subsequent revision proceedings. The court criticized the department's lack of representation during the appellate proceedings and its failure to communicate the filing of a revision application. Justice Singh noted that the Customs Department's conduct left the petitioner in a state of uncertainty and delay.

The court ordered the immediate implementation of the Appellate Authority's decision, waiving the warehousing charges due to the delay caused by the Customs Department. However, the petitioner is still required to pay the applicable customs duty and the fine/penalty.

Mushlina is directed to appear before the Customs Authority on October 9, 2025, to complete the necessary formalities. The court emphasized the need for the Customs Department to ensure proper representation in future appellate proceedings and to promptly inform affected parties of any revisions filed.

This judgment underscores the importance of administrative fairness and timely communication in legal proceedings involving customs and excise duties.

Bottom Line:

Customs Department must ensure compliance with orders of the Appellate Authority and serve notice of revision application to affected parties promptly. 

Statutory provision(s): Customs Act, 1962 - Sections 111, 112, 125

Mushlina v. Commissioner of Customs, (Delhi)(DB) : Law Finder Doc Id # 2781869