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2021 (9) TMI 91 - TELANGANA HIGH COURTClassification of imported goods - consignment of gold pendants weighing 5 kgs - to be classified under Custom Tariff Heading (CTH) 7108 or CTH 7113? - prohibited goods or not - concessional rate of duty in terms of Free Trade Agreement (FTA) - HELD THAT:- The subject goods under import were subjected to refining and manufacturing process, resulting in getting an oval shape with flower symbol and purity being imprinted thereon. Thus, the subject goods were in fully worked and finished condition. Exim Code and CTH 7108 and with sub-heading and item description 7108-12-00 under which heading the respondents seek to classify the subject import deals with ‘Gold - unwrought’. The term ‘unwrought’ as used in the heading means ‘Gold’ that is ‘not worked upon’ thereby meaning “not subjected to process of refining and reaching finished condition”. It is to be noted that from the date of filing of Bill entry by the petitioner on 10.05.2021 till 05.06.2021 i.e., the date of seizure, the respondents did not raise any doubt as to the mis-declaring / mis- classifying the goods as ‘Articles of Jewellery’. A reading of panchanama drawn on 05.06.2021 and also the subsequent two panchanamas would show that the correct description of the goods is not given, as it fails to mention that each of the pendant had a protrusion with a hole and a ring through which a chain can be passed through, so that the imported goods can be worn as a hanging in the neck - The term ‘Gold Bar’ as known to people dealing in such goods, is of a rectangular form having specified length and width and also of a higher weight. That apart, when the Import of Gold was regulated in the Gold (Control) Act, 1968, the bringing in Gold into country in small quantity was in the form of ‘Biscuit’- weighing about 50 grams and above, followed by Gold-Bar and the last and bigger form being Gold-Brick. Since, the goods imported by the petitioner are classifiable under Exim code 711319, the amendment made to the policy condition from ‘free’ to ‘restricted’ would not be applicable. If the import of goods is not ‘restricted’ and is permitted as ‘free’, the subject import cannot be considered as ‘prohibited’ goods liable for confiscation. The seizure of import consignment is set aside - the respondents are directed to assess Bill of Entry classifying the goods as falling under CTH 7113 1910, within a period of five (5) days from the date of receipt of a copy of this order - the respondents shall bear the warehousing charges payable for keeping the imported consignment under safe custody till the date of release - Petition allowed - decided in favor of petitioner.
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