Delhi High Court directs implementation of Order-in-Original for release of seized gold jewellery
Background and procedural history
The Delhi High Court, sitting in hybrid mode, dealt with a dispute concerning detention of gold jewellery and cut pieces by the Customs authorities on arrival of an assessee into India. The matter came up in an application filed in an already-disposed writ petition, W.P.(C) 4273/2025, where the core grievance was non‑implementation of an Order-in-Original (OIO) passed by the Customs Department.
The assessee, an Indian national employed in the private sector in Kuwait, arrived in India from Kuwait on 23 February 2024. At the time of his arrival, he was carrying:
- One gold chain weighing 51 grams, and
- Two gold cut pieces, each weighing 65 grams.
According to the assessee, he consciously chose the red channel at the airport in order to declare the gold items in accordance with Customs procedures. Despite him opting for the red channel, the gold chain and the two gold pieces were detained by Customs officials and a Detention Receipt bearing No. 3853 dated 23 February 2024 was issued. The seized items were later appraised by the Department.
When the writ petition was initially instituted, the assessee’s complaint was not about the legality of seizure per se, but primarily that no formal adjudication order had been passed, even though he was ready to pay the customs duty that might be leviable on the seized gold pieces.
First High Court order dated 4 April 2025
When the writ petition first came up for consideration, the Delhi High Court examined the basic factual matrix and passed an order on 4 April 2025. The Court recorded that:
- The assessee was willing to discharge the customs duty on the two gold pieces; and
- The gold chain, in the Court’s view, could appropriately be regarded as a personal effect of the assessee.
On that basis, the Court directed as follows:
Gold chain as personal effect
The gold chain weighing 51 grams was to be treated as the assessee’s personal effect and accordingly directed to be released without levy of any customs duty.Gold pieces to be adjudicated by Customs
In relation to the two gold pieces, the Court:- Directed the assessee to appear before the competent Customs authority;
- Noted that the assessee had chosen the red channel with the apparent intention of declaring the items; and
- Mandated that the Department pass an order after hearing the assessee and consider the fact that he had attempted to make a declaration by using the red channel.
The assessee was required to appear before the Customs Department on 22 April 2025 at 11:30 AM, and the Department was asked to pass an order in accordance with law after granting him an opportunity of being heard.
Order-in-Original dated 29 July 2025
Pursuant to the above judicial directions, the Customs Department proceeded to adjudicate the matter and passed an Order-in-Original on 29 July 2025. Under this OIO, the adjudicating authority examined the eligibility of the assessee in light of Notification No. 50/2017-Cus dated 30.06.2017 (as amended) and the Baggage Rules, 2016 (as amended).