The Delhi High Court has pressed the Central Board of Indirect Taxes and Customs (CBIC) to expedite amendments to the Baggage Rules, 2016. The Court’s direction follows continuing legal disputes regarding the detention of personal gold jewellery from Indian and foreign passengers.
A division bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that this reflects increasing public discontent and legal challenges over the Customs Department’s handling of personal effects and jewellery declared at airports. Several petitions are being filed daily, highlighting procedural ambiguities and inconsistent enforcement practices.
Previously, on March 27, 2025, the Court had directed the Customs Department to issue a Standard Operating Procedure (SOP) pending formal amendments to the Baggage Rules. A revised SOP was later approved by the Court on May 19, 2025, covering aspects such as the recording of statements under Section 108 of the Customs Act, and appraisal and disposal procedures for detained goods.
However, the Court emphasized that several key concerns remain unresolved, including the permissible weight of used gold jewellery for returning Indian passengers. Jewellery allowance for foreign tourists. Limits for jewellery imports through Green/Red Channels. Timely issuance of show cause notices under the Customs Act.
The CBIC, Ministry of External Affairs, Ministry of Tourism and Culture, Directorate General of Foreign Trade (DGFT), Directorate of Revenue Intelligence (DRI), and other agencies have reportedly held six meetings since May to finalize a comprehensive proposal. These proposals address rising gold prices, re-importation of used jewellery, and clearer baggage allowances for gifts and personal effects.
Acknowledging the “substantial progress” in inter-ministerial consultations, the Court granted a six-week window for CBIC to place the draft Baggage Rules before it. The Court directed that the rules be submitted at least two days prior to the next hearing scheduled for September 8, 2025.
In the specific case of Qamar Jahan, the petitioner alleged wrongful detention of two gold bangles (kadas) and one gold chain—claimed to be old personal jewellery. Despite a prior Court order on May 19, 2025, directing the release of the items and waiving storage charges due to a favourable Commissioner (Appeals) order, the jewellery remains unreleased.
The Central Warehousing Corporation (CWC) has also come under fire for allegedly insisting on storage charges in defiance of court orders. A CWC official appeared in court and was warned of strict consequences for future non-compliance.
Given a factual dispute between the parties on whether the seized items constitute old personal jewellery, the Court directed that the detained goods be physically produced at the next hearing.
The Court has made it clear that if no policy is placed before it in time, interim directions will be issued to resolve the inconsistencies and anomalies in gold valuation and passenger categories under the Baggage Rules. The Registry has been directed to forward the order to the OSD (Legal), CBIC, and ensure compliance.
Case Details
Case Title: QAMAR JAHAN Versus UOI
Case No.: W.P.(C) 198/2025, CM APPL. 8813/2025 & CM APPL. 38634/2025
Date: 23/07/2025
Counsel For Petitioner: Ashish Panday
Counsel For Respondent: Jagdish Chandra
