Mahesh Malkani Vs Commissioner of Customs (Delhi High Court)
The Delhi High Court addressed a petition filed by Mahesh Malkani, a resident of Dubai, challenging an order passed by the Commissioner of Customs, Indira Gandhi International Airport, New Delhi. The challenge was lodged after a Rolex watch worn by the petitioner upon arrival in India was detained for non-declaration.
The Customs Detention and Order-in-Original
On March 7, 2024, the petitioner’s Rolex watch, valued at ₹13,48,500, was detained by Customs for alleged non-declaration, resulting in the issuance of a detention receipt. Subsequently, the Customs authority passed an Order-in-Original on January 30, 2025.
In this order, the authority:
1. Denied the petitioner’s Free Allowance for failing to declare the item.
2. Confiscated the watch under various sections of the Customs Act, 1962 (specifically Sections 111(d), 111(j), 111(l), and 111(m)).
3. Provided an option to redeem the confiscated watch for re-export upon payment of a redemption fine of ₹1,80,000 under Section 125(3) of the Act, valid for 120 days.
4. Imposed a penalty of ₹1,50,000 on the petitioner under Sections 112(a) and 112(b).
High Court’s Finding on ‘Commercial Quantity’
The petitioner challenged the underlying premise of the Customs order, particularly paragraph 8.4, which contained the finding that the detained article was “clearly in commercial quantity and cannot possibly be for personal use.”
