Legal principle

Baggage and transfer-of-residence rules confer at most a duty exemption and cannot override import restrictions under the Exim Policy — possession of valid Arms Act licences does not entitle a person to import firearms into India where their import is restricted and no DGFT licence has been granted.

Court decision

The Supreme Court dismissed the appellant's appeals with no order as to costs, agreeing with the Division Bench of the Delhi High Court. It held that the appellant was not entitled, by virtue of the Arms Act, 1959 or the Baggage Rules, to import the two detained firearms, since import of firearms is permissible only against a DGFT import licence issued to renowned shooters/rifle clubs on the recommendation of the Department of Youth Affairs and Sports, a category to which the appellant does not belong; the detention was therefore justified. The Court expressly declined to consider the effect of the Exim Policy on the Circulars dated 5 January 1988 and 7 June 1995 (under which one firearm was permitted), as that controversy was not raised before it.

Facts

The appellant, an Indian citizen returning from the USA on transfer of residence, arrived at IGI Airport, New Delhi on 1 October 2000 with baggage and three firearms for which he held valid licences under the Arms Act, 1959. Customs at the airport told him only one firearm was permitted under the Transfer of Residence Rules and that an import licence from the DGFT was needed for the other two. The Additional Commissioner of Customs (Respondent No. 3) detained all three firearms under a detention order dated 1 October 2000, releasing only the Walther PPKS handgun on 16 February 2001. The DGFT refused import of the remaining two, stating firearms are restricted items importable only by renowned shooters/rifle clubs on the recommendation of the Department of Youth Affairs and Sports, and the appellant's litigation before the Delhi High Court failed.

Key provisions

• Rule 7, Baggage Rules, 2016 — Currency
• Section 79, Customs Act, 1962 — Bona fide baggage exempted from duty