2015 (8) TMI 1256 - HC - Customs

Import of gold jewellery - assessment - whether the Directorate of Revenue Intelligence Alert Circular dated 19th June 2015 which is sought to be relied upon by the customs authorities has any relevance or not in the given facts of the instant case. - Verification of original documents submitted by the importer in respect of the imported consignment of gold jewellery - Held that - Customs authorities have simply shifted their responsibility to the Directorate of Revenue Intelligence which is certainly not the true scope purport and effect of the Alert Circular dated 19th June 2015 issued by the Directorate of Revenue Intelligence. - The Customs authorities are directed to take immediate steps to finally assess the imported consignment of gold jewellery in accordance with law.

Summary

Issues:
Competent authority verification of original documents for imported consignment of gold jewellery under preferential trade agreements.

Analysis:
The judgment revolves around the issue of whether the competent authority verified the original documents submitted by the importer for the imported consignment of gold jewellery under preferential trade agreements. The Customs authorities relied on a Standing Order dated 22nd February, 2012, for exemption of basic customs duty based on a Certificate of Origin. However, a Directorate of Revenue Intelligence 'Alert Circular' dated 19th June, 2015, required Customs to scrutinize imports of gold jewellery and request information on compliance with Rules of Origin before assessing provisionally.

The Court found that the reliance on the 'Alert Circular' by Customs was misplaced as there was no doubt regarding the genuineness of the Certificate of Origin. The responsibility to verify the Certificate of Origin rested with the concerned AC/DC, and provisional assessment was only necessary in case of doubt. Customs shifting this responsibility to the Directorate of Revenue Intelligence was deemed incorrect as per the 'Alert Circular.'

Consequently, the Court directed Customs to finalize the assessment of the imported gold jewellery expeditiously, preferably within a fortnight but not later than three weeks from the date of communication of the order. The writ petition was disposed of accordingly, and urgent certified copies of the order were to be provided to the advocates for the parties.