Disposed¶27

Dilaram Shamuratovna v. Union of India & Anr.

Delhi HC14 Feb 2025W.P.(C)/1855/2025

Case brief

AI extract

What is this about?

W.P.(C) 1855/2025, Delhi HC, order dt. 14.02.2025 (Singh & Sharma, JJ.) - release of seized foreign currency USD 24,500/- (INR 20,02,875/- equivalent) refused pending Department's appeal against Order-in-Original dt. 29.03.2024 (confiscation u/S 113, redemption fine Rs. 2,50,000/- u/S 125, penalty Rs. 2,10,000/- u/S 114 r/w S.13 FEMA, Customs Act 1962); Commissioner (Appeals) directed to decide appeal within four months per S.128A(4A); petitioner's remedies left open; IGI Airport seizure; Uzbekistan national.

What did the court decide?

Writ petition disposed of; release of currency not granted at this stage; Commissioner (Appeals) directed to decide the Department's appeal within four months; all remedies and rights of the Petitioner left open. ¶27

Dilaram Shamuratovna Vs Union of India & Anr. — Customs and Excise | Delhi HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the Petitioner is entitled to release of the seized foreign currency of USD 24,500/- while the Department's appeal against the Order-in-Original dated 29.03.2024 is pending before the Commissioner (Appeals).

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Ratio / Principle

Until the Commissioner (Appeals) adjudicates the Department's appeal against the Order-in-Original dated 29.03.2024, the Petitioner's prayer for release of the seized currency cannot be granted.

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Key takeaways

In terms of Section 128A(4A) (which ordinarily mandates disposal of appeals within six months), the Commissioner (Appeals) is directed to decide the Department's appeal as per the provisions of the Act within a period of four months.ratio¶26

Detailed headnote1 paragraphs

Delhi High Court (Prathiba M. Singh and Dharmesh Sharma, JJ.) by order dated 14.02.2025 disposed of a writ petition under Article 226 filed by DILARAM SHAMURATOVNA seeking release of USD 24,500/- seized by the Customs Department at IGI Airport on 06.03.2023, when she arrived as a tourist on an Uzbekistan passport. After a show cause notice dated 04.09.2023, the Order-in-Original dated 29.03.2024 ordered confiscation of the currency (valued at INR 20,02,875/-) under Section 113 of the Customs Act, 1962, with an option to redeem on payment of redemption fine of Rs. 2,50,000/- under Section 125, and imposed a penalty of Rs. 2,10,000/- under Section 114 read with Section 13 of FEMA, 1999. Though the Petitioner was willing to pay the fine and penalty, the currency was not released; the Department informed the Court that it has preferred an appeal against the Order-in-Original. HELD: until the Commissioner (Appeals) adjudicates that appeal, the prayer for release of the currency cannot be granted; invoking Section 128A(4A), the Commissioner (Appeals) was directed to decide the appeal within four months; petition disposed of with all remedies and rights of the Petitioner left open.

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$~12

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- W.P.(C) 1855/2025

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DILARAM SHAMURATOVNA .....Petitioner

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Through: Mr. Ashish Panday, Mr. Ajay Singh & Mr. Anshuman Gupta, Advs.

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versus

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UNION OF INDIA & ANR. .....Respondents Through: Mr. Shubham Tyagi, SSC CBIC and Ms. N Ojha, Adv. (M: 9650049869). Mr. Shankar Kr. Jha, SPC, UOI.

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CORAM:

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JUSTICE PRATHIBA M. SINGH JUSTICE DHARMESH SHARMA

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O R D E R

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% 14.02.2025

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This hearing has been done through hybrid mode.

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The present petition has been filed under Article 226 of the Constitution of India seeking release of the currency to the tune of USD 24,500/- which was seized by the Respondent/Department from the Petitioner on 6th March, 2023.

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The case of the Petitioner is that she had arrived at IGI airport as a tourist on 6^th March, 2023, and she was holding an Uzbekistan passport. The currency to the tune of USD 24,500/- was seized. Subsequently, a show cause notice was issued on 4^th September, 2023, and the Order-in-Original was passed on 29^th March, 2024, giving the Petitioner permission to redeem the goods upon payment of redemption fine and penalty. The operative portion of the order reads as under:

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/02/2025 at 11:15:17

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“i. I order confiscation of the above said seized Foreign Currency amounting to 24500/-USD , equivalent to INR 20,02,875/- (Rupees twenty Lakh two thousand eight hundred seventy five only) attempted to be exported by Noticee during current visit (Departure) under Section 113 of the Customs Act, 1962;

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ii. I give an option to the Noticee to redeem the goods confiscated above on payment of redemption fine of Rs. 2,50,000/- (Rupees Two Lakh Fifty Thousand Only) under Section 125 of the Customs Act, 1962 along with the payment of applicable, Customs duty penalty, other duties cess and charges as applicable. The redemption to be allowed after the completion of legal formalities in this regard and also fulfillment any regulatory clearances/approvals required. The offer of redemption if accepted shall subject to condition that the Noticee shall not dispute the identity and valuation of the goods. The offer of redemption shall cease after three months of the receipt of this order.

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iii. I impose a penalty of Rs. 2,10,000/-/- (Rupees Two Lakh Ten Thousand Only) under Section 114 of the Customs Act, 1962, read with Section 13 of the Foreign Exchange Management Act, 1999 on the Noticee in respect of the confiscated Foreign Currency.”

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The case of the Petitioner is that the amount is still not being released in spite of the Petitioner’s willingness to pay the redemption fine and the penalty.

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Yesterday on 13^th February, 2025, the matter was listed and the Department was directed to take instructions as to whether any appeal has been filed challenging the said Order-in-Original or not.

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Mr. Tyagi, ld. Counsel on instructions, today, submits that an appeal

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/02/2025 at 11:15:17

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has been preferred by the Respondent/Department and hence, the release would not be possible at this stage.

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Since the clear instructions are that the Department has challenged the Order-in-Original dated 29^th March, 2024, the Commissioner (Appeals) must now adjudicate the appeal in accordance with the law. Until such adjudication, the prayer for the release of the currency cannot be granted.

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In terms of Section 128A(4A), the Commissioner (Appeals) is to decide every appeal where it is possible to do so within a period of six months from the date when it has been filed. Accordingly, the Commissioner (Appeals) in the present case shall decide the appeal as per the provisions of the Act within a period of four months.

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The writ petition is accordingly disposed of in the above terms. All pending applications, if any, are also disposed of.

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All remedies and rights of the Petitioner are left open.

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PRATHIBA M. SINGH, J.

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DHARMESH SHARMA, J.

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FEBRUARY 14, 2025 dj/Am

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/02/2025 at 11:15:17

Dilaram Shamuratovna v. Union of India & Anr.

Case brief

What is this about?

What did the court decide?

Dilaram Shamuratovna v. Union of India & Anr.

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

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