Summary of this article
Customs Department detained woman traveller's 24K gold bangles under Baggage Rules, 2016
Delhi high court ruled bangles are personal jewellery
The court directs Customs to return bangles within to the woman
If you are travelling back to India and wearing a jewellery item, it is subject to the Customs department's check under the Baggage Rules 2016. While bona fide baggage of travellers up to a certain limit is allowed for duty-free clearance, any deviation could result in hassle and sometimes detainment of the item. In a recent case, the Delhi High Court gave relief to a woman traveller whose gold jewellery of 24 karat was detained by the Customs Department. The division bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta directed the Customs to return the jewellery item to the woman, as it was her personal effect (personal jewellery).
The woman filed a petition and asked for the release of her jewellery (four gold bangles, 25 grams each), confiscated by the Customs.
Case Background
The petitioner is an Indian citizen who went to Riyadh to visit her husband, who works there. She wore these bangles while visiting him. But while returning to India, she did not declare the item as her personal jewellery, which led to the detention of the jewellery.
On March 19, 2024, the Customs Department issued a detention receipt to the petitioner. On October 9, 2024, the impugned order's copy was handed over to the petitioner's lawyer at the time of appearance before the Department.
Arguments
· The petitioner’s counsel argued that the gold bangles are her personal jewellery and thus should not be detained. Further, they argued that the Department did not give a chance of a personal hearing, and a waiver of the show cause notice (SCN) is against the law.
· The respondent side argued that the petitioner’s lawyer asked for waiver of SCN and a personal hearing, and that’s why there is “no Illegality”.
Observation
The court observed that the adjudicating authority, who passed the impugned order, held that the ""petitioner is an ineligible passenger and has relied under Rule 5 of the Baggage Rules, 2016 to hold that the cap which has been fixed under the said rule is much lower and the value of the gold which the Petitioner was carrying is higher"".
What Is Rule 5 Of The Baggage Rules, 2016?
Rule 5 of the Baggage Rules, 2016, defines that, "A passenger residing abroad for more than one year, on return to India, shall be allowed clearance free of duty in his bona fide baggage of jewellery upto a weight, of twenty grams with a value cap of fifty thousand rupees if brought by a gentleman passenger, or forty grams with a value cap of one lakh rupees if brought by a lady passenger.""
The court also observed that, "The weight of four gold bangles collectively is 100 grams, which means that each bangle weighs 25 grams. On the aspect of personal effects and jewellery, the adjudicating authority has merely held that because of the purity, the same cannot be considered as personal jewellery as it is prohibited goods. This is contrary to the settled law."
Judgement
The court referred to previous judgements of high courts and the Supreme Court, and held that "absolute confiscation of the four gold bangles without even permitting payment of any duty, redemption fine or penalty seems to be an extreme measure taken by the Adjudicating Authority. Moreover, personal hearing cannot be waived as per the settled law."
It set aside the impugned order and directed the Customs Department to release the bangles to the petitioner within four weeks, subject to the warehousing charges from the date of detention.
