The Delhi High Court dealt with a petition challenging the impugned order passed by the Office of the Commissioner of Customs, IGI Airport, New Delhi, regarding detention and proposed confiscation of a Rolex watch belonging to a resident of Dubai. The Delhi High Court clarified that a single Rolex watch cannot be deemed commercial quantity and allowed redemption of the detained article, while emphasizing caution in future adjudication. The Court noted the importance of correct application of Customs law, particularly Section 125 of the Customs Act, and highlighted that personal use of imported goods must be reasonably considered.
The petitioner, a Dubai resident, travelled to India and on arrival at IGI Airport, New Delhi, one Rolex watch he was wearing was detained for alleged non-declaration. An earlier order permitted redemption of the watch for re-export on payment of a redemption fine and imposed a penalty. The petitioner approached the High Court questioning certain observations in the impugned order, particularly the classification of a single watch as commercial quantity, and sought clarity on the redemption procedure.
Counsel for the petitioner argued that a single Rolex watch could not be considered commercial quantity and could legitimately be kept for personal use. It was submitted that paragraph 8.4 of the impugned order incorrectly implied commercial intent and created unnecessary complications. The petitioner requested the Court to allow redemption without dispute over the personal use claim, while upholding payment of the previously imposed redemption fine.
The Court observed that the impugned order correctly allowed redemption of the detained goods, but erred in concluding that a single Rolex watch constituted commercial quantity. As the Court stated verbatim, “Clearly, this Court is of the view that one Rolex watch cannot be held to be a commercial quantity and there is no reason as to why the same cannot be kept for personal use.”
Further, the Court highlighted the need for careful adjudication, noting, “The adjudicating authority is cautioned to ensure that in future, such errors do not occur in the orders which are passed by the adjudicating authority.” The Court clarified that warehousing charges remain applicable as per law.
The Court allowed the petition, directing the petitioner to pay the redemption fine by 31st October, 2025 and redeem the detained Rolex watch in accordance with the original order. Pending applications were also disposed of. The Court emphasized that future orders must be precise and proportionate, ensuring that personal use of goods is not wrongly treated as commercial.
Case Title: Mahesh Malkani vs. Commissioner of Customs
Case No.: W.P.(C) 14402/2025
Coram: Justice Prathiba M. Singh, Justice Shail Jain
Advocate for Petitioner: Adv. Dr. Ashutosh, Fatima, Pravej
Advocate for Respondent: Adv. Atul Tripathi (SSC), Shubham Mishra
Picture Source :