Qamar Jahan Vs Union of India (Delhi High Court)
In the case of Qamar Jahan vs. Union of India, the Delhi High Court addressed concerns regarding the Baggage Rules, 2016, particularly about the confiscation of gold jewellery carried by air travellers. The petitioner challenged orders passed by customs authorities that confiscated two gold kadas and a gold chain, imposed a fine of ₹75,000, and levied a personal penalty of ₹1,10,000 under the Customs Act, 1962. The court examined the rules governing the declaration and duty exemption for jewellery brought by passengers from abroad.
Under the Baggage Rules, jewellery is not classified as “personal effects.” Passengers residing abroad for over a year are allowed to carry jewellery duty-free within specific limits: 20 grams valued at ₹50,000 for men and 40 grams valued at ₹1,00,000 for women. The court noted that these thresholds, set in 2016, are outdated given the current market price of gold, making the permissible weight significantly lower than intended. Furthermore, the court raised concerns about the lack of clarity in the declaration process, which leads to arbitrary actions by customs officials, often causing harassment to genuine travellers attending social events like weddings.
The court recommended a comprehensive review of the Baggage Rules by the Central Board of Indirect Taxes and Customs (CBIC) to address these issues. It emphasized the need for balanced policies that curb illegal gold smuggling without inconveniencing legitimate travellers. The CBIC was directed to reassess the permissible limits and streamline the declaration process to avoid arbitrary enforcement and provide clear guidance to passengers. A report on the reconsideration is to be submitted by March 27, 2025.
