FAQs: Can you carry 24-Carat gold jewellery into India without any seizure?

Delhi High Court rules that high-purity gold jewellery cannot be confiscated solely based on purity, reinforcing travellers' rights under the Baggage Rules, 2016.

In a landmark ruling, the Delhi High Court allowed a woman to reclaim four 998-purity gold bangles seized by customs authorities, reinforcing that purity alone does not convert jewellery into commercial gold or bullion. The judgment clarifies the interpretation of India’s Baggage Rules, 2016, and highlights travellers’ rights under the Customs Act.

Business Standard spoke to Aditya Bhattacharya, Partner, King Stubb and Kasiva and Rajarshi Dasgupta, Executive Director - Tax, AQUILAW to understand what documentation and proof of ownership, are key for travellers to avoid seizure. The ruling reassures individuals carrying heirlooms, wedding jewellery, or religious ornaments that customs must focus on intent and context, not just purity or value. 

 

Customs authorities often classify high-value items as commercial imports, leading to seizures. Courts, however, consider multiple factors, including form and use, ownership history, quantity and value, and pattern of behaviour. Jewellery worn regularly or long-owned typically qualifies as personal, while bullion, bars, or packaged items raise suspicion of commercial intent.

 

Travellers are advised to carry proof of ownership, such as invoices, bills, or photographs showing prior use, and ensure compliance with customs procedures. A Show Cause Notice (SCN) and an opportunity for a hearing are mandatory under Section 124 of the Customs Act before any confiscation or penalty. Failure to follow these procedures can render seizure orders vulnerable to judicial review.

Is high-purity gold (24 carat / 998) treated differently under Indian law?

A: No. Neither the Customs Act, 1962, nor the Baggage Rules, 2016, provide any special treatment for very high-purity gold. Authorities consider the form, use, and context of the item rather than purity alone.

2. How do courts decide if jewellery is for personal use or commercial sale?

A: Factors considered include:

Form & Use: Worn or used jewellery (like bangles, chains) is likely personal; bullion, bars, or coins suggest commercial intent.

Ownership History: Items long-owned or acquired before travel favor personal use.

Quantity & Value: Excessive amounts may raise suspicion; exceeding duty-free limits can classify a passenger as “ineligible.”

Behaviour Patterns: Repeated incidents or links to smuggling weigh against the traveller.

 

Q3. What precautions should travellers take?

Understand Baggage Rules, 2016, including duty-free limits.

Carry proof of ownership: bills, invoices, or photographs showing prior use.

Maintain hallmarks or purity certifications.

Ensure procedural compliance: customs must issue a Show Cause Notice (SCN) and provide a hearing before confiscation.

 

Q4. Does this ruling set a binding precedent?

Yes, within Delhi High Court’s jurisdiction, the Shamina v. Commissioner of Customs (2025) judgment binds lower courts and tribunals.

 

The Court held:

Gold purity alone cannot disqualify jewellery as “personal.”

Absolute confiscation without a hearing or duty/penalty option is extreme.

Procedural safeguards (SCN, hearing) must be respected.

Customs can appeal to the Supreme Court or seek review in the High Court, but until overturned, the ruling is binding in Delhi.

 

Q5. What about other high-purity jewellery seizures?

Travellers can challenge seizures on similar grounds: purity alone does not make jewellery ineligible.

The ruling may encourage litigation in other jurisdictions seeking release of seized jewellery.

 

Q6. How is duty or valuation determined if jewellery is seized but later released?

 

Tariff valuation is based on market rates, spot gold price, and sometimes ornamentation or workmanship.

Warehousing charges may apply for storage while items are held.

 

Q7. Are there tax consequences?

Jewellery exceeding duty-free limits under Baggage Rules may attract customs duty, IGST, and penalties.

Proper declaration and documentation can mitigate tax liability.

 

Q8. Why are SCN and personal hearings important?

Section 124 of the Customs Act mandates that before confiscation, travellers must receive:

Written notice of proposed action.

Opportunity to submit representations.

Chance for a personal hearing.

Skipping these steps violates natural justice, making confiscation orders vulnerable to judicial review.

 

Q9. What are the Baggage Rules, 2016, duty-free jewellery limits?

Passenger Type Weight Cap Value Cap Duty-Free

Male 20g ₹50,000

Female 40g ₹1,00,000

Exceeding these limits or being an “ineligible passenger” can make jewellery liable for duty or seizure.

 

Q10. How does customs define “ineligible passenger”?

Someone who does not satisfy duty-free conditions:

Not residing abroad >1 year.

Jewellery or goods not bona fide baggage.

Items exceeding value/weight limits or misdeclared.

Items treated as commercial import.

 

Q11. When can customs confiscate goods completely?

Under Sections 111 & 125, absolute confiscation may occur if goods are prohibited or misdeclared.

Often, a redemption option (paying duty/fine) exists for personal goods.

 

Q12. How did the Delhi HC interpret “personal jewellery”?

Jewellery worn or used by travellers remains personal effects regardless of purity.

Mere high-purity (24 carat / 998) does not automatically classify items as bullion or commercial goods.