In Brief
On 19 November 2002, customs officers intercepted Ms. Pushpa Lekhumal Tolani at Delhi's IGI Airport after she passed through the Green Channel, recovering 28 packages of gold and diamond jewellery valued at Rs. 1.27 crores from her baggage. The Directorate of Revenue Intelligence seized the goods and issued a show-cause notice leading to confiscation and a criminal conviction. The High Court quashed the confiscation order, finding the jewellery was permissible personal effects for duty-free import by a tourist. The Supreme Court dismissed the DRI's appeal, holding that: (1) the Green Channel declaration was sufficient; (2) tourists may bring personal jewellery of substantial value duty-free if intended for re-export; (3) absence of evidence of concealment negated smuggling allegations; and (4) the newness of items was irrelevant to their status as personal effects.
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