New Delhi, Dec 2 The Delhi High Court has directed the Customs Department to release a Rolex watch seized from an Indian-origin US resident, after finding that authorities failed to issue a mandatory show-cause notice (SCN) within the statutory period.
Disposing of a writ petition filed by one Monish Kansal, a Bench of Justice Prathiba M. Singh and Justice Renu Bhatnagar held that the continued detention of the watch was "impermissible" under Section 110 of the Customs Act.
"If no SCN is issued within the time prescribed under Section 110 of the Act, the seized goods are liable to be released. In this case, the one-year period itself has elapsed, thus no SCN can be issued at this stage. The continued detention of the seized watch is, therefore, impermissible and the same is liable to be released to the petitioner," said the Justice Singh-led Bench.
The petitioner, a US permanent resident, had arrived in Delhi from Dubai on February 22, wearing his old Rolex watch, which was detained at the Indira Gandhi International Airport. The petition argued that the watch - a "personal effect" - had been in long-term use, as evidenced by several scratches on both the dial and the strap.
On September 22, the Delhi High Court had directed the production of the seized watch.
"A perusal of the same would show that the same is clearly a used watch, as there are several scratches on the same, both on the dial and the strap. The watch is clearly an old personal effect of the Petitioner, who is a foreign resident," noted the Justice Singh-led Bench.
Relying on the Supreme Court's ruling in DRI v. Pushpa Lekhumal Tolani, the Delhi High Court reiterated that bona fide personal effects of travellers - new or used - are not treated as dutiable imports.
Further, it found that no show-cause notice had been issued within the time period mandated under Section 110(2) of the Customs Act, noting that failure to issue an SCN within the prescribed period automatically triggers release of the seized goods.
Directing the release of the Rolex for re-export without any duty or warehousing charges, the Delhi High Court asked the petitioner to appear before the Customs Department on December 22.
If represented by an authorised person, the order stated, the petitioner must join virtually and provide written confirmation of the authorisation.
The Justice Singh-led Bench also appointed a nodal officer, Mukesh Gulia, Superintendent, Legal, IGI Airport Customs, to facilitate compliance with the order. The watch, after inspection, was resealed and returned to Customs officials, noted the Delhi High Court.
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