Delhi High Court Orders Release of Detained Jewellery with Waived Penalty
Customs Authority Directed to Release Jewellery Upon Payment of Duty and Redemption Fine; Baggage Rules Under Revision
In a significant ruling, the Delhi High Court has directed the release of jewellery detained by customs authorities, subject to the payment of applicable customs duty and a reduced redemption fine of Rs. 60,000. The court waived the personal penalty initially imposed on the petitioner, Qamar Jahan, citing the unique circumstances of the case. This decision was rendered by a division bench comprising Justices Prathiba M. Singh and Rajneesh Kumar Gupta.
The jewellery, including two gold kadas and one gold chain, had been seized by customs officials who deemed it non-personal and confiscated it under the Customs Act, 1962. The petitioner challenged the confiscation order, originally demanding a redemption fine of Rs. 75,000 and a personal penalty of Rs. 1,10,000. Despite the appeal being dismissed, the court's intervention led to the jewellery's release, emphasizing the need for compliance with customs duty and reduced fines.
The court's decision followed a series of hearings initiated after the customs authorities failed to act on previous orders directing a quick resolution. On the previous hearing date, the jewellery was presented in court, confirming it was not personal-use jewellery. Consequently, the court instructed the petitioner to appear before customs officials for compliance and ensured that the jewellery's release would not set a precedent for future cases.
The judgment also highlighted ongoing efforts to revise the Baggage Rules, 2016, and Baggage Regulations, 2013. These revisions aim to align the definitions of 'jewellery' and 'personal effects' with judicial decisions, considering the monetary cap and practical implications of customs enforcement. The court acknowledged substantial progress in these revisions, granting additional time for finalization and implementation.
Further, the Customs Department was directed to streamline the disposal procedure for detained jewellery, ensuring passengers are informed prior to disposal. This procedural enhancement seeks to minimize litigation and enhance compliance with judicial directives, reflecting a collaborative approach among various governmental agencies.
This ruling marks a pivotal step in addressing customs-related disputes, balancing enforcement with fair treatment of travelers, and promises a more streamlined regulatory framework for future cases.
Bottom Line:
Customs Law - Detained jewellery seized by Customs Authority - Court directs release of detained jewellery subject to payment of applicable customs duty and redemption fine.
Statutory provision(s): Customs Act, 1962
Qamar Jahan v. Union of India, (Delhi)(DB) : Law Finder Doc Id # 2786362
