No 'Punishment' via Delay: Delhi HC Slams Customs Over Detained Goods
The Delhi High Court warns that delayed customs adjudication and mounting demurrage charges cannot be used as a mode of punishment for passengers.
The Delhi High Court has taken a stern view of the Customs Department's tendency to delay the adjudication of cases involving detained goods. The court observed that leaving items in warehouses for extended periods, while allowing demurrage charges to pile up, cannot be treated as a "mode of punishment" for passengers.
Warehouses Not For Punishment
A Division Bench comprising Justice Avneesh Jhingan and Justice Shail Jain noted that this is not an isolated occurrence. The court expressed serious concern that goods detained by Customs frequently remain in warehouses for months or even years without any final decision on the matter.
The issue came to light during the hearing of a petition filed by Mr. Niyamat Khan against the Commissioner of Customs at IGI Airport and another respondent. The legal battle highlighted a systemic lack of urgency within the department.
The Timeline of Delay
According to the Customs Department, the goods in this specific case were detained in January 2025. The department claimed they issued a notice on August 25, 2025, offering the petitioner a personal hearing in the second week of September 2025. However, they argued that the process stalled because the petitioner failed to attend the hearing.
The High Court found this explanation insufficient, pointing out a glaring timeline:
- January 2025: Goods were detained.
- August 2025: Notice for hearing issued.
- November 2025: The writ petition was drafted.
- February 18, 2026: Notice was issued in the matter.
- November 3, 2026: The matter remained unadjudicated.
The Bench remarked that the Department was well aware of the pending proceedings, yet failed to resolve the matter for nearly two years.
mounting Costs and Passenger Hardship
The Court highlighted a recurring pattern where Customs authorities blame the absence of a passenger at a hearing to justify delays. Meanwhile, the passenger suffers as demurrage charges—fees for storing goods beyond the allotted time—continue to accumulate.
"The delay in adjudication cannot be made a mode of punishment for the passengers whose goods have been detained," the Court observed.
The Bench further noted that this hardship is particularly severe for passengers who are not permanent residents of India and cannot easily return to resolve the dispute. The financial burden increases as charges accrue not just until the initial order is passed, but potentially through the revisional stage if the Department continues to contest the matter.
Call for Systemic Reform
Emphasizing the need for a standardized approach, the Court stated that uniform instructions and a consistent procedure must be established to ensure that such cases are adjudicated expeditiously.
While the Court initially considered summoning the Chief Commissioner of Customs, it eventually allowed the Department to submit detailed instructions via an affidavit within three weeks. The Court suggested that the Chief Commissioner collect data from various airports and the Central Warehousing Corporation to identify the total number of pending cases and the duration for which goods have been detained.
The case is scheduled for further hearing on November 27, 2026.