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2025 Supreme(Online)(Chh) 10846
IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Arvind Kumar Verma, J
Ashok Bera – Appellant
Versus
Union Of India Through C B I C, Dept. Of Revenue, Ministry Of Finance – Respondent
WPC No. 739 of 2025
For the Petitioner(s): Shri Divakar Upadhyaya
For Respondent No.1/UOI:Ms. Shweta Rai, Advocate on behalf of Shri R.K. Mishra, DSGI
For Respondent No,2 & 3: Shri Anumeh Shrivastava
The court held that the issuance of a show cause notice under the Customs Act is not subject to judicial review unless exceptional circumstances indicate mala fides or violation of fundamental rights.
Headnote:(A) Customs Act, 1962 - Sections 104, 110, 110A and 135 - Show Cause Notice - Petition seeking quashment of SCN issued under the Customs Act - Petitioner contends that the seized gold is of Indian origin, legally procured and that the SCN is illegal and procedurally flawed. (Paras 2, 4, 9)
(B) Jurisdiction - Principles of natural justice - The petitioner alleges violation of principles of natural justice and procedural irregularities - However, the Court highlights that the issues raised are maintainable under the statutory authorities and not at the writ stage. (Paras 6, 7)
(C) Efficacious alternative remedies - The Court noted that the petitioner has efficacious remedies available under the Customs Act, as provided for appeals post-SCN. Court declined to intervene at SCN stage without proof of mala fide intent. (Paras 8, 9)
Facts of the case:
The petitioner alleges wrongful seizure of gold and jewelry on grounds of importation without authority, asserting all goods are of Indian origin, supported by invoices.
Findings of Court:
The issuance of SCN is valid and procedural adherence under Customs Act was established.
Issues: The main issues were whether the SCN is illegal or arbitrary and if there is an exceptional circumstance to warrant interference.
Ratio Decidendi: The Court found no exceptional circumstances justifying issuance of a writ at the SCN stage; statutory remedies are effective for addressing grievances.
Result: Petition dismissed.
| Table of Content |
|---|
| 1. seizure of gold allegedly of foreign origin. (Para 2 , 3) |
| 2. contention of illegality in scn and lack of statutory adherence. (Para 4 , 5) |
| 3. validity of the scn and assertion of the petitioner's claim. (Para 6 , 7) |
| 4. court's refusal to intervene given statutory provisions. (Para 8 , 9) |
| 5. final dismissal of the petition. (Para 10) |
Order on Board
12/09/2025 With the consent of the parties, the matter is heard finally.
2. The petitioner has filed the present petition under Article 226 and 227 of the Constitution of India read with Section 177 of the Cr.P.C. Sections 12 & 13 of the Railway Protection Force (PRF) Act, Rules 14 and 15 of the RPF Rules and Sections 104 ,110, 110A and 135 of the Customs Act, 1962 (the “Act”) seeking quashment of the Show Cause Notice (SCN) dated 18.06.2022, issued under the provisions of the Customs Act, 1962 . The grievance of the petitioner arises from the seizure of gold and gold articles allegedly of foreign origin including :
i. One gold bar of 1 kg. of Indian origin which does not carry any foreign marks or indication of foreign origin, allegedly seized on
19.11.2021 from RPF officials;
ii. Finished and semi-finished gold jewellery/ornaments of Indian origin made from locally acquired or manufactured fold, raw fold and gold dust weighing 1820.17 grams seized from the shop o the petitioner on 19-20.11.2021;
iii) Gold jewellery weighing 169.51 grams seized from one Idrish/Indrish Malik on 19-20.11.2021;
iv) Gold jewellery weighing 29.84 grms (18 carat) seized on
26.11.2021 belonging to Ranu Bera, wife of the petitioner.
The petitioner is seeking quashment of all proceedings initiated against him in connection with the above.
3. Facts of the case are that on 19.11.2021 a gold bar of 1 kg was allegedly seized from Satinath Dhara by RPF officials at Bilaspur Railway Station. Subsequently on 19-20.11.2021 gold jewellery, semi- finished jewellery and raw gold were allegedly seized from the premises of the petitioner. The SCN dated 18.06.2022 alleges confiscation of all seized gold on the grounds of import and possession of goods of foreign origin without authorization. The petitioner contend that all the seized gold jewellery and raw material is of Indian origin, legally procured, manufactured supported by invoices and documentary evidence.
4. Contention of the counsel for the petitioner is that the SCN is illegal and void ab initio as the DRI had no authority to issue the same. He submits that the petitioner had legally acquired all the gold and jewellery in question. The seizure from RPF officials and the petitioner’s premises was procedurally flawed without adherence to statutory provisions of the Customs Act or RPF Act. There was no notice under Section 102 of the Customs At to the petitioner before personal search. All documents relied upon by the respondents are disputed by the petitioner as fabricated or inconsistent. The SCN violates principles of natural justice as no opportunity was affording to present evidence of Indian origin of the seized goods. The petitioner therefore seeks release of all gold and jewellery and quashing of the proceedings as malafide, arbitrary and unsustainable.
5. The proceedings leading to the seizure were mala fide, arbitrary and violative of statutory procedures under the Customs Act. It is submitted that the documents relied upon by the respondents, including invoices and panchnamas, are fabricated. It is submitted that the SCN violates principles of natural justice and no prior notice under Section
102 of the Customs Act was allegedly given to the petitioner. He further submits that the SCN proposes confiscation of gold allegedly imported illegally whereas the gold was purchased legally from M/s. Saheli Jewellers, Bhilai supported by invoices. He submits that the petitioner has no opportunity to present his case and the proceedings amount to an abuse of process.
6. Per contra, learned counsel for the respondents No. 2 & 3 submits that the SCN was issued in a
