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HomeIndirect TaxesCustoms Act Applies, But Baggage Rules Don’t Cover Transit Passengers: CESTAT Issues...

Customs Act Applies, But Baggage Rules Don’t Cover Transit Passengers: CESTAT Issues Corrigendum 

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The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has issued a corrigendum clarifying that Baggage Rules under the Customs Act, 1962, are not applicable to transit passengers who have not crossed immigration or the green channel.

The order, passed by Ashok Jindal, Member (Judicial), reinforces the legal position that Customs provisions must be interpreted considering the passenger’s movement status. The decision highlights that mere presence at an Indian airport during transit does not automatically trigger the applicability of Baggage Rules if the passenger has not formally entered Indian territory through immigration.

The corrigendum pertains to Customs Appeal No. 55378/2023 filed by Jai Kishan Choudhary, challenging the confiscation of gold while he was in transit at Delhi Airport. The original Final Order No. 51024/2025, dated July 16, 2025, has now been rectified under Section 129B of the Customs Act for an apparent mistake on the face of the record.

Key Corrections in Tribunal’s Findings

As per the revised paragraphs 6 and 7 of the order:

  • The appellant was a transit passenger, traveling from Bangkok to Dubai via New Delhi, and had not crossed immigration or the green channel.
  • Consequently, the Tribunal held that Baggage Rules were not applicable, and the objections raised by the Revenue were overruled.
  • On merit, it was held that the gold seized was not liable for confiscation, and therefore, no redemption fine or penalty was to be imposed on the appellant.

Case Details

Case Title: Jai Kishan Choudhary Versus Commissioner of Customs, New Delhi 

Case No.: Customs Appeal No. 55378 Of 2023

Date:  16.07.2025

Counsel For  Appellant: Prabjyoti K. Chadha, Advocate 

Counsel For Respondent:  Rohit Issar, Authorized Representative

Read More: Cheque Bounce Complaint Valid Even Without Naming Partnership Firm as Accused: Supreme Court

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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