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2021 (10) TMI 391 - Customs
Re-classification of imported goods - cut and polished diamonds - enhancement of value by recourse to rule 9 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - confiscation - redemption fine - penalty - HELD THAT:- In terms of N/N. 12/2012-Cus dated 17th March 2012, both ‘rough diamonds’ and ‘diamonds including lab grown diamonds – semi processed, half cut or broken’ are exempted from duty on import. The goods were entered for import on the claim for classification against heading no. 7102 3100 of First Schedule to Customs Tariff Act, 1975 attracting ‘nil’ rate of duty but was ordered for re-classification against heading no. 7102 3910 of First Schedule to Customs Tariff Act, 1975 with duty liability of 2% for demanding differential duty.
The impugned order is categorical in its finding of reclassification that the reports of Gemological Institute of India and Trade Panel Members as well as that of GIA India Pvt Ltd were clear that the goods did not conform to the declaration. It is also seen that the circular no. 35/2009-Cus dated 29th December 2009 of Director General of Export Promotion was discarded.
While the impugned goods may not be ‘rough diamonds’ as mined and may have undergone working before its import, the reports do not conclusively establish that these were ‘cut and polished diamonds’ on which duty liability was to be fastened - It does not appeal to reason that intention of evading duty of mere ₹1,03,817 prompted misdescription in the bill of entry. Coupled with the inadequate evidence of the goods conclusively being ‘cut and polished diamonds’, this strikes at the very foundation of the proceedings initiated against the appellant and the culmination thereof.
Appeal allowed - decided in favor of appellant.