In a significant ruling that underscores the importance of correctly interpreting customs baggage rules, the Delhi High Court has granted relief to a Dubai-based Indian traveller whose ₹12.7 lakh Rolex Submariner was seized at the Indira Gandhi International Airport last year. Customs officials had confiscated the luxury watch on the ground that it was not declared and wrongly treated it as a “commercial quantity.”
A Division Bench comprising Justice Pratibha M. Singh and Justice Sahil Jain ruled that while Customs was justified in detaining the undeclared watch, it had erred in assuming commercial intent from a single luxury item. “A single Rolex watch cannot be treated as commercial quantity and there is no reason why it cannot be kept for personal use,” the Court observed.
The case revolved around Mahesh, an Indian national residing in Dubai, who arrived in Delhi in March 2024 wearing the Rolex watch. Believing that personal effects such as a wristwatch did not require declaration, he proceeded through the Green Channel meant for passengers without dutiable goods. Customs officers intercepted him and seized the watch, issuing a detention receipt that classified it as a commercial item.
Earlier this year, an Order-in-Original permitted Mahesh to redeem the watch upon payment of a fine, but Customs continued to treat the item as a trade import. Aggrieved by this classification, Mahesh challenged the decision before the Delhi High Court.
The Bench allowed redemption of the watch upon payment of the prescribed fine by October 31, clarifying that personal luxury items, though dutiable, do not automatically indicate trade activity. However, the Court reiterated that travellers carrying such high-value items are still obligated to declare them at arrival counters.
What the Customs Rules Say?
Under India’s Baggage Rules, passengers arriving from abroad must declare any dutiable, restricted, or high-value goods — even if these are for personal use.
- Duty-Free Limit: Returning passengers can bring goods worth up to ₹45,000–₹50,000 duty-free.
- For Jewellery: Men can bring up to ₹10,000, while women are allowed up to ₹20,000 duty-free.
- Luxury Items: Watches, designer accessories, and high-end electronics exceeding ₹50,000 in value must be declared.
- Children (under 10 years): Eligible for only half the adult limit.
- Pooling of Allowance: Family members cannot combine allowances.
Failure to declare such items may attract confiscation under Sections 111(d), (j), (l), and (m) of the Customs Act, 1962, and penalties under Section 112, in addition to payment of duties and redemption fines under Section 125.
Court’s Key Clarification
While upholding Customs’ power to detain undeclared goods, the Court distinguished between “non-declaration” and “commercial intent.” The judgment affirms that the mere possession of a costly personal item does not imply it was imported for sale or profit.
“The ruling ensures that bona fide travellers are not unfairly penalised for carrying personal luxury goods,” said a customs law expert. “However, it also reinforces the duty of travellers to disclose such items transparently to avoid litigation or penalties.”
