The Delhi High Court ordered the release of personal jewellery detained by the Customs Department at IGI Airport, New Delhi, citing procedural lapses under the Customs Act, 1962 and the Baggage Rules. The Court found that the statutory safeguards specifically the requirement of issuing a proper show-cause notice and granting a personal hearing had not been followed, and held that the items in question clearly constituted personal effects, exempt from confiscation.
The case arose from the detention of goods of a passenger who arrived from Dubai on May 2, 2023, wearing one gold chain and two gold bangles with a total weight of 200 grams. She was intercepted at the green channel, and the jewellery was seized on the ground of non-declaration. A detention order was passed, followed by an Order-in-Original confiscating the items and imposing a penalty of ₹1.15 lakh.
Although the petitioner had signed a pre-filled waiver form, the Court held that such a waiver cannot override statutory rights. Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that when liberty and property are at stake, compliance with procedural safeguards is non-negotiable. The Court noted that the Appellate Authority had already recognised the absence of malafide intent, categorising the jewellery as for personal use rather than smuggling, and had accordingly allowed re-export of the items on payment of redemption fine and penalty.
Despite the appellate ruling, the Customs Department failed to release the jewellery and instead initiated a revision proceeding, stalling implementation. The Court found this delay unjustified and pointed out that no show-cause notice had been issued even after one year far exceeding the six-month statutory limit under Section 110 of the Customs Act, which can be extended only once.
Citing its prior rulings in Manan Karan Sharma v. Commissioner of Customs, 2025:DHC:4183-DB and Amit Kumar v. Commissioner of Customs, (2025) SCC OnLine Del 647, the Court reiterated that jewellery worn by passengers or gifted by family members is treated as personal effects under the Baggage Rules and cannot be confiscated without due process.
The Court accordingly issued the following directions:
- The petitioner may appear before Customs on August 11, 2025, to complete formalities.
- Upon payment of ₹1.15 lakh each towards redemption fine and penalty, the jewellery shall be released for re-export.
- If she is unable to appear in person, an authorised representative may collect the items with her written consent. Additionally, warehousing charges accrued during detention were waived in full.
Appearances:
Petitioner: Mr. Anmol Agarwal & Mr. Puru, Advs.
Respondent: Mr Akash Verma, Sr. Standing Counsel, CBIC with Ms. Aanchal Uppal, Adv