Used Jewellery Worn By Passenger Falls Within Ambit Of Personal Effects, Same Is Exempted From Detention under Customs Act, 1962 : Delhi High Court
The Delhi High Court has ruled that used jewellery worn by a passenger qualifies as “personal effects” under the Baggage Rules, 2016, and is thereby exempt from detention by the Customs Department. The ruling was delivered in W.P.(C) 5753/2025, filed by senior citizens Krishna Reddy Kundam and his wife, seeking the release of gold kada seized at Indira Gandhi International Airport.
The Division Bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta noted that the seized jewellery, weighing 99 grams each and worn by the female petitioner upon her return from the USA, constituted bona fide personal effects. The court emphasized that under Rule 3 of the Baggage Rules, used personal effects carried by passengers are entitled to duty-free clearance.
Background
The couple arrived at Delhi Airport on February 7, 2025, carrying two gold kadas, each weighing 99 grams, which they stated were intended as a gift for their granddaughter. Since the gift was declined, they brought the jewellery back to India. The wife was wearing the jewellery at the time of arrival when customs officials detained the items.
According to the petition, the Customs Department allegedly forced the petitioners to sign a pre-drafted waiver of the show cause notice, without explaining their rights or initiating the mandatory adjudication process.
Court’s Findings
The Court noted that under Rule 2(vi) read with Rule 3 of the Baggage Rules, 2016, bona fide baggage includes used personal effects, and while “jewellery” is excluded from that definition, judicial precedent distinguishes between new jewellery and personal, used jewellery worn or carried by passengers.
Citing multiple landmark decisions — including the Supreme Court’s ruling in Directorate of Revenue Intelligence v. Pushpa Lekhumal Tolani and the Delhi High Court’s own Division Bench ruling in Saba Simran v. Union of India — the Bench held that used personal jewellery qualifies as a personal effect and cannot be detained or taxed without proper cause.
Direction to Customs Authorities
Although the Customs Department has scheduled a hearing on May 26, 2025, the Court ordered that, subject to this hearing, the jewellery must be released within four weeks, and no storage or warehousing charges shall be levied on the petitioners.
Conclusion
The ruling strengthens the jurisprudence around the rights of international travellers, especially senior citizens, and reaffirms that used jewellery for personal use is protected from arbitrary seizure. It also serves as a stern reminder to Customs authorities to uphold due process and not rely on boilerplate waivers in sensitive cases.
Cause Title: Krishna Reddy Kundam & Anr. v. Commissioner of Customs (Neutral Citation: 2025:DHC:4374-DB)
Appearance:
Petitioner: Legum Attorney:- Advocates Priyanshu Upadhyay, Ajay Singh, Ashish Panday, Akshat Raghuwanshi, Pushpank Pandey
Respondent: SSC Harpreet Singh, Advocates Suhani Mathur, Jai Ahuja