LexDIRECTORATE OF REVENUE INTELLIGENCE AND OTHERS versus PUSHPA LEKHUMAL TOLANI
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[2017] 7 S.C.R. 711 DIRECTORATE OF REVENUE INTELLIGENCE AND OTHERS A v. PUSHPA LEKHUMAL TOLANI (Civil Appeal No. 4403 of 2010) AUGUST 18, 20 l 7 [R.K. AGRAWAL AND PRAFULLA C. PANT, JJ.[ B Customs Act, 1962 - ss. 77, 78 - Smuggling - Gold and diamond jewellery - Items claimed to be personal effects - Bringing C jewellery into India for taking it out with the passenger is permissible and is not liable to any import duty ~ Even as per EXIM Code Numbers 7113 19 20 and 7113 19 30 of ITC (HS) Classification of Export and Import items as on 01.04.2002, the import of gold jewellery studded with diamonds or with other precious stones, is freely allowed - Jn the instant case, in the absence of any facts on D record about the nature and mode of concealment and also any finding of the lower authority that jewellery brought by respondent was kept in a way to evade detection on examination of the baggage, it has to be held that there was no concealment as such - Respondent . chose the Green Channel for clearance of her baggage - She E committed no violation of law or infraction of any instruction for clearance of the baggage through the green channel as she being a tourist had no dutiable goods to declare under the Baggage Rules - Similarly, the invocation of s. 78 of the Act is of no use as this Section applied only to dutiable and prohibited goods - The accusation of not declaring the goods to the customs authority and F evading duty alleged to be due thereupon has no legal basis - Also, with regard to the proximity of purchase of jewellery, all the jewellery was not purchased a few days before the departure of the respondent from UK, a large number of items had been in use for a long period - The presumption that the jewellery found in her baggage cannot G be considered as personal effects owning to its high monetary value is rebutted - Respondent was entitled to import personal jewellery duty free - Jn the facts and circumstances of this case, the .remarks against the appellant from the judgment passed by the High Court are expunged - Baggage Rules, 1998 - r. 7. 711 H .... 712 SUPREME COURT REPORTS [2017] 7 S.C.R. A Dismissing the appeal the Court B c HELD: 1. Insofar as the question of violation of the provisions of the Act is concerned, the respondent did not violate the provisions of Section 77 of the Act since the necessary declaration was made by the respondent while passing through the Green Channel. Such declarations are deemed to be implicit and devised with a view to facilitate expeditious and smooth clearance of the passenger. Further, as per the International Convention on the Simplification and Harmonization of Customs Procedures, (Kyoto 18.05.1973), a passenger going through the green channel is itself a declaration that he has no dutiable or prohibited articles. Further, a harmonious reading of Rule 7 of the Baggage Rules, 1998 read with Appendix E (2), the respondent was not carrying any dutiable goods because the goods were the bona fide jewellery of the respondent for her personal use and was intended to be taken out of India. Also, with regard to the D proximity of purchase of jewellery, all the jewellery was not purchased a few days before the departure of the respondent from UK, a large number of items had been in use for a long period. It did not make any difference whether the jewellery is new or used. There is also no relevance of the argument that E F since all the jewellery is to be taken out of India, it was, therefore, deliberately brought to India for taking it to Singapore. Foreign tourists are allowed to bring into India jewellery even of substantial value provided it is meant to be taken out of India with them and it is a pre-requisite at the time of making endorsements on the passport. Therefore, bringing jewellery into India for taking it out with the passenger is permissible and is not liable to any import duty. Even as per EXIM Code Numbers 7113 19 20 and 7113 19 30 of ITC (HS) Classification of Export and Import items as on 01.04.2002, the import of gold jewellery studded with diamonds or with other precious stones, is freely· allowed. G Similarly,the invocation of section 78 of the Act is of no use as this Section applied only to dutiable and prohibited goods. The accusation of not declaring the goods to the customs authority and evading d·uty alleged to be due thereupon has .no legal basis. [Para 9) [72
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