ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 20.09.2025
Supreme Court Clarifies Time Limits for Seizure and Release of Goods Under Customs Act
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
The Supreme Court of India recently delivered a significant judgment in the case of Union of India & Ors. vs. Respondent (Civil Appeal No. β 3489 of 2024), addressing the legal implications of non-issuance of show-cause notices under the Customs Act, 1962. This ruling has far-reaching consequences for businesses dealing with seized goods and the procedural obligations of customs authorities. β
Background of the Case
The dispute arose when the Directorate of Revenue Intelligence (DRI) seized a luxury car (Maserati) owned by Respondent, a trader in imported and second-hand luxury cars. β The car was detained under Section 110 of the Customs Act, 1962, and later provisionally released under Section 110A. β However, the DRI failed to issue a show-cause notice within the stipulated time frame prescribed under Section 110(2) of the Act. β
The respondent approached the Delhi High Court, which ruled in his favor, declaring that the failure to issue a show-cause notice within the prescribed period entitled him to the unconditional release of the seized car. β The Union of India challenged this decision before the Supreme Court.
Source: Supreme Court
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