Gold at Customs: Delhi High Court Orders Major Reforms in Seizure & Detention of Passenger Goods

Gold at Customs: Delhi High Court Orders Major Reforms in Seizure & Detention of Passenger Goods

In a significant development affecting international passengers arriving in India, the Delhi High Court on 19th May 2025 issued a detailed order in W.P.(C) 198/2025, filed by Qamar Jahan v. Union of India, the Ministry of Finance, and other respondents. The matter, which concerns the detention of personal jewellery by the Customs Department at airports, was heard by a Division Bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta.

The Court, recognizing the increasing number of grievances from passengers—both Indian and foreign—about arbitrary detentions and confiscations, approved a Standard Operating Procedure (SOP) drafted by the Customs Department with modifications to address procedural deficiencies and reduce harassment at entry points.

Also Read: Delhi High Court to Customs: Stop Unnecessary Detention of Personal Jewellery from Air Travellers

Highlights of the Court-Approved SOP:

• Transparent Detention Receipts: Must include complete passenger details, item descriptions, and signatures of both officers and passengers.
• Mandatory Documentation & Communication: Copies of passports, boarding passes, and digital images of seized goods to be shared with passengers.
• Clarified Detention Process: Customs officers to explain procedures and timelines clearly.
• Waiver of Show Cause Notice: Only upon explicit, written consent of the passenger; standardized pre-printed forms abolished.
• Right to Personal Hearing: Cannot be waived, even if the show cause notice is waived.
• Prompt Disposal & Humane Treatment: Expedited appraisement and waiving of storage charges where justified.

The Court emphasized that no harassment should be caused to passengers wearing used or personal jewellery, particularly items of sentimental or cultural value.

Directions Specific to the Petitioner:

The petitioner, Qamar Jahan, had challenged the confiscation of two gold kadas and a gold chain, along with associated fines and penalties under the Customs Act, 1962. The Court found that the Revision Authority had failed to act in time, and ordered the release of the jewellery within four weeks. Further, storage charges were waived, considering the petitioner had succeeded at the Commissioner (Appeals) level.

CWC Warned Over Non-Compliance:

The Court took serious note of repeated complaints that the Central Warehousing Corporation (CWC) was not honoring court directions regarding storage charge waivers and timely release of goods. The Court warned of stringent action against CWC personnel for any future non-compliance and recorded an assurance from CWC’s Assistant Manager, Ms. Anjali Ralhan, of full adherence.

Broader Implications:

The Bench also raised critical policy issues still pending, including:

• Clarification on permissible limits for used gold jewellery for Indian and foreign passengers.
• Procedural clarity in issuing and adjudicating show cause notices under the Customs Act.
• Long-overdue amendments to the Baggage Rules, 2016, which are currently under stakeholder consultation by the Central Board of Indirect Taxes and Customs (CBIC).

The Court has set 23rd July 2025 as the next date for compliance review, with a warning that interim directions will be passed if policy amendments are not finalized.

This case marks a pivotal step towards ensuring dignity and procedural fairness for international travelers, especially concerning personal belongings that often carry emotional, cultural, or religious significance.