Legal principle

Customs cannot confiscate goods or impose penalty without a show cause notice and hearing; an order passed without one may be treated as a mere show cause notice and decided afresh.

Court decision

The writ petition was disposed of. The confiscation order was treated as a show cause notice. The importer got two weeks to reply. The officer must then decide on merits, including with reference to the Quality Control Order dated 12.02.2026, and pass a reasoned order within four weeks.

Facts

M/s. Alankar Shipping And Trading Co. P. Ltd. imported packing plywood from Vietnam into Chennai under bill of entry no. 3836297 dated 12.08.2025. Customs did not assess or clear the goods. The importer asked on 23.02.2026 to move the goods to a Free Trade Warehousing Zone. After an earlier writ, the High Court on 19.06.2026 directed customs to decide that request. Customs then passed Order-in-Original No.119700/2026 dated 18.08.2026 confiscating (taking over) the goods worth Rs.21,82,714 under Section 111(d), allowing redemption on a fine of Rs.2 lakhs under Section 125, and imposing a penalty of Rs.1 lakh under Section 112(a). No show cause notice was issued. The importer filed a writ in the Madras High Court.

Key provisions

• Section 124, Customs Act, 1962 — Issue of show cause notice before confiscation of goods etc