New Delhi: The Delhi High Court on September 17, 2025, partly upheld the confiscation of a Rolex watch belonging to Mahesh, an Indian citizen and current resident of Dubai, UAE, while clarifying that the watch cannot be treated as a commercial quantity. The court allowed Mahesh to redeem the watch on payment of a fine of Rs 1.8 lakh and instructed customs authorities to ensure similar errors do not recur in future orders.
Background of the seizure
Mahesh landed at Delhi Airport on March 7, 2024, wearing the Rolex watch, valued at Rs 13,48,500. Customs officers seized the watch, claiming he had adopted the wrong channel for importing goods as passenger baggage. They argued that the single watch constituted a commercial quantity and denied him the duty-free allowance under the Baggage Rules, 2016.
An Order-in-Original, dated January 30, 2025, allowed Mahesh to redeem the watch for re-export upon payment of a fine of Rs 1.8 lakh within 120 days. However, Mahesh filed an appeal after the redemption period had lapsed, seeking relief from the confiscation.
Court observations
Justice Prathiba M. Singh of the Delhi High Court noted an error in the customs order regarding the classification of the watch as a commercial quantity. The court observed that a single Rolex watch cannot be considered commercial and could reasonably be kept for personal use.
The court directed that Mahesh pay the redemption fine by October 31, 2025, and complete the redemption process in accordance with the original order. It cautioned customs authorities to avoid similar errors in future adjudications. However, the court upheld the confiscation, citing Mahesh’s failure to declare the high-value item to the proper customs officer upon arrival.
Legal context
High-value items like the Rolex watch, valued above Rs 50,000, are excluded from the duty-free personal baggage allowance under the Baggage Rules, 2016. While personal effects and travel souvenirs up to Rs 50,000 are exempted, luxury watches are generally classified under non-exempt articles.
Advocates Ayush Mehrotra (Khaitan & Co) and Deeksha Prakash (ASL Partners) noted that under Section 77 of the Customs Act, 1962, baggage owners must declare the contents to the customs officer. While Section 79 provides for duty exemption for bona fide baggage, high-value items exceeding Rs 50,000 require proper declaration and payment of customs duty.
The Delhi High Court referenced previous rulings, including DRI vs Pushpa Lekhumal Tolani (2017), which emphasised that high-value jewellery or watches may sometimes be treated as personal effects depending on circumstances.
Conclusion
While the Delhi High Court corrected the customs authority’s flawed reasoning regarding the Rolex watch being commercial, it emphasised the importance of declaring high-value items to customs, even for personal use. Mahesh is now allowed to redeem the watch by paying the fine and warehousing charges, ensuring compliance with legal formalities. The case underscores the need for vigilance by both travellers and customs officials in handling luxury items at Indian airports.