Reconsidering Cap On Value Of Gold Jewellery Permitted At Airports: CBIC To Delhi High Court
The Central Board of Indirect Taxes and Customs has informed the Delhi High Court that it is considering increasing the cap on the value of gold that can be carried by a person travelling to India by air.Currently, the Baggage Rules 2016 permit any jewellery of 20 grams with a value cap of Rs. 50,000/- in case of a man and 40 grams with a value cap of Rs. 1,00,000/- in case of a woman to...
The Central Board of Indirect Taxes and Customs has informed the Delhi High Court that it is considering increasing the cap on the value of gold that can be carried by a person travelling to India by air.
Currently, the Baggage Rules 2016 permit any jewellery of 20 grams with a value cap of Rs. 50,000/- in case of a man and 40 grams with a value cap of Rs. 1,00,000/- in case of a woman to be cleared free of duty.
A division bench led by Justice Prathiba M. Singh had earlier highlighted that this limit is not in consonance with the current market rate of gold, thereby creating an anomaly.
“The market rate of gold at present, where forty grams of gold would be costing much more than the value cap of Rs. 1,00,000/- prescribed under Rule 5 of Baggage Rules. With the maximum limit of Rs.1,00,000/-, the gold that could be purchased may only be around 15 grams,” the judges had said, asking the Board to consider reviewing the Rules.
In September, the Court had reiterated its concern while hearing the case of Qamar Jahan, whose two gold kadas and one gold chain were detained by the Customs.
Accordingly, CBIC counsel has assured the bench also led by Justice Rajneesh Kumar Gupta that the definition of jewellery and the monetary cap is being re-considered by the Board.
In addition, it was submitted that certain further inputs have been received from certain stakeholders which are all being put together and also being considered by CBIC before finalising the new Rules and Regulations in respect of the Baggage Rules.
As such, the Court directed that the final draft of the Baggage Rules, Regulations, Rules and Circulars be placed on record by the next date of hearing, i.e. December 18.
The Court further made it clear that it will be laying down the practice to be followed by the Customs in the interregnum, while the finalization of the new Baggage Rules and Regulations is pending.
Appearance: Mr Ashish Panday, Mr. Priyanshu Upadhyay, Mr, Ajay Singh, Mr. Akshat Raghuvanshi, Advs. for Petitioner; Mr. Jagdish Chandra Solanki, CGSC with Mr. Siddhanth Bajaj & Ms. Maanya Saxena, Advs. for UOI. Mr. Shubham Tyagi, SSC, CBIC along with Mr. Munesh Kumar Meena, Assistant Commissioner, CBIC
Case title: Qamar Jahan v. UoI
Case no.: W.P.(C) 198/2025