2023 (9) TMI 1549 - HC - Customs

Court Rules Duty-Free Jewelry; Orders Return of Seized Yellow Metallic Chain and Kada to Foreign National at IGI Airport.

NATHAN NARAYANSAMY Versus COMMISSIONER OF CUSTOMS

The HC quashed the seizure proceedings against the petitioner, a foreign national, regarding the confiscation of a yellow metallic chain and kada at IGI ... Baggage rules - Challenge to Seizure-proceedings - permission to reexport his seized personal gold jewellery - return of Seized personal gold jewellery of the petitioner - HELD THAT:- Undisputedly, and since the petitioner held a foreign passport, it would be the Proviso to Rule 3 alone which would apply. In terms of the said Proviso, a tourist of foreign origin is permitted clearance of duty free articles in his bona fide baggage, and the articles and the limits/restrictions of those articles which are not allowed duty free are mentioned in Annexure-I. As we read Entry 5 in Annexure-I, it speaks of gold or silver in any form other than ornaments. The chain and the kada which were found on the person of the petitioner would undoubtedly fall in the category of jewellery and ornaments. Clause 5 of Annexure-I would therefore not sustain the seizure of the articles in question. Rule 5 of the Baggage Rules, pertains to a passenger who is returning to India after having resided abroad for more than one year. That would clearly not apply to the petitioner here who is undisputedly a foreign national. Rule 5 in any case appears to be relating to an “eligible passenger” and which pertain to an Indian national upon his return to the country after having lived abroad for the period prescribed. The seizure proceedings as emanating from the notice dated 08 December 2022 is quashed - petition allowed. Issues:1. Seizure proceedings of personal gold jewelry in a customs case.2. Reexport of seized personal gold jewelry.3. Release of seized personal gold jewelry during the petition's pendency.4. Direction to supply copies of all documents.Detailed Analysis:1. The petitioner arrived at IGI Airport, New Delhi, from Singapore and was detained after crossing the Green Channel. The respondent recovered a yellow metallic chain and kada weighing 463 grams from the petitioner, valued at Rs.21,45,079. The respondent claimed the goods were liable for confiscation.2. The Baggage Rules 2016 were considered for arriving passengers, allowing clearance of duty-free articles based on certain provisions. The rules specify limits and restrictions for duty-free items, including jewelry. The petitioner, holding a foreign passport, falls under the Proviso to Rule 3, permitting duty-free articles for tourists of foreign origin.3. Entry 5 in Annexure-I of the Baggage Rules mentions gold or silver in any form other than ornaments as non-duty-free items. The chain and kada found on the petitioner were categorized as jewelry and ornaments, not falling under the seizure criteria of Clause 5 of Annexure-I.4. Rule 5 of the Baggage Rules, pertaining to passengers returning to India after residing abroad for over a year, was deemed irrelevant to the petitioner, a foreign national. The rule is applicable to eligible passengers, typically Indian nationals returning after a specified period abroad.5. Consequently, the court allowed the writ petition, quashing the seizure proceedings initiated on December 8, 2022. The respondent was directed to return the seized articles, the yellow metallic chain and kada, to the petitioner immediately.