24K Gold at the Airport? Court Says It’s YOURS, Not Customs’

The Delhi High Court has ruled that gold jewellery worn by passengers returning to India cannot be detained by Customs if it qualifies as “personal effects.” The decision comes after a woman returning from Riyadh challenged the confiscation of her jewellery.

The Case

The petitioner, an Indian citizen, was wearing four 24-karat gold bangles weighing 100 grams when she landed in India on 19 March 2024. She had not declared the items at customs, believing they were part of her personal belongings.

However, Customs detained the jewellery, claiming she had exceeded the duty-free gold limit under Rule 5 of the Baggage Rules, 2016, and that 24-karat gold could not be treated as “personal effects.”

The woman argued that:

• The jewellery was old and regularly worn, not newly purchased.
• She was denied a fair personal hearing.
• Her waiver of the Show Cause Notice (SCN) was not voluntary or legally valid.

Court’s Findings

A Bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta ruled in her favour, holding that:

• Jewellery worn by passengers can be treated as personal effects, regardless of gold purity.
• Classifying worn jewellery as “prohibited goods” merely because it is 24K gold is wrong.
• Confiscating the bangles without giving the option to pay duty, redemption fine, or penalty was excessive.
• A personal hearing is a legal right and cannot be waived casually, especially if disputed.
  

The Court set aside the confiscation order and directed Customs to return the jewellery within four weeks, after payment of applicable warehousing charges from the date of detention.

Gold Jewellery Rules – Baggage Rules, 2016

Under Rule 5 of the Baggage Rules, 2016:

• Women returning after more than one year abroad can bring gold jewellery duty-free up to 40 grams worth ₹1 lakh.
• Men can bring up to 20 grams worth ₹50,000.
• This limit applies only to jewellery carried in baggage, not worn.

Rule 3 allows clearance of used personal effects, including worn items, up to ₹50,000 for short-term travellers. But since “jewellery” is not clearly defined as a personal effect in the rules, customs officers often use their discretion, leading to inconsistent enforcement.

Key Travel Tips for Jewellery

• Declare any jewellery exceeding the permitted limit, even if worn.
• Gold of Indian origin taken abroad can be brought back duty-free if declared when leaving India.
• Do not assume worn jewellery is exempt from declaration.
• Keep receipts or proof of purchase, especially for high-purity or new items.