They Took The Car In February And Wrote The Seizure Memo Fourteen Months Later
He imported a Land Cruiser, paid nearly a crore in customs duty, and the Directorate of Revenue Intelligence took it during a search. The seizure memo came more than a year afterwards.
The Court directed release and imposed costs of Rs 10,000 on the respondents, to be complied with in two weeks. It also laid down what must happen in future cases: whenever goods are seized, in addition to the panchnama the proper officer must pass an order clearly recording the reasons to believe the goods are liable for confiscation; and where seizure is not practicable, the officer may instead serve an order on the owner restraining him from dealing with the goods without permission.
- A panchnama is not a seizure. A separate order recording reasons to believe is required.
- The gap was fourteen months. The search was in February 2025; the seizure memo under Section 110(1) came in April 2026.
- Duty had been paid in full — about Rs 99.79 lakh — before the vehicle was taken.
- The Court gave prospective guidance, not merely relief on these facts.
- Court
- High Court of Gujarat at Ahmedabad
- Bench
- Justice HONOURABLE MR. JUSTICE A.S. SUPEHIA, Justice HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI
- Citation
- R/Special Civil Application No. 6295 of 2025
- Case
- R/Special Civil Application No. 6295 of 2025
- Decided
- 25 August 2026
- Outcome
- Petition allowed with directions and costs of Rs 10,000
What happened
The petitioner bought a Toyota Land Cruiser from Japan for USD 54,000 in December 2024. It was shipped, cleared against a Bill of Entry, and assessed. He paid stamp duty and customs duty of about Rs 99.79 lakh, and insured the vehicle. The registration number was awaited.
In February 2025 the Directorate of Revenue Intelligence searched his residential premises and the car was taken. He came to the High Court.
While the petition was pending, a seizure memo under Section 110(1) of the Customs Act was issued in April 2026 — more than a year after the vehicle was taken — followed by a show-cause notice under Section 124 read with Section 28(4).
What the Court laid down for the future
The Court directed that in all future cases, whenever goods are being seized, the proper officer must — in addition to the panchnama — pass an appropriate order clearly mentioning the reasons to believe that the goods are liable for confiscation.
Where it is not practicable to seize the goods, the officer may instead serve an order on the owner that he shall not remove, part with or otherwise deal with them except with the previous permission of that officer.
The directions were to be complied with within two weeks, and costs of Rs 10,000 were imposed on the respondents, to be deposited with the Registry in the same period.
Who argued it
Appearances as recorded in the judgment of the Court.
Frequently asked
Is a panchnama enough to seize goods?
No. The Court directed that a separate order must also be passed, clearly recording the reasons to believe the goods are liable for confiscation.
What if seizure is not practicable?
The officer may serve an order on the owner restraining him from removing or dealing with the goods without previous permission.
When goods are taken during a search
- Ask immediately for the seizure order, separate from the panchnama, and note the date it is actually issued.
- Record the interval between the goods being taken and any order being passed. Fourteen months was fatal here.
- Keep proof of duty paid and assessment completed; it went to the petitioner's case that the import was regular.
- Where release is refused, press for provisional release and check the circular relied on is still good law.
Source. High Court of Gujarat at Ahmedabad, R/Special Civil Application No. 6295 of 2025, decided 25 August 2026 by Justice HONOURABLE MR. JUSTICE A.S. SUPEHIA, Justice HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI. This explainer is written from the judgment text as reported.
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