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2018 (12) TMI 308 - AT - CustomsJustification for import of Gold granules (non-monetary) - gold in semi-manufactured form classifiable under chapter heading 7108 13 00 of the CTA, 1975 - It is the case of the revenue that import of gold granules is permitted only through a nominated bank or a nominated agency or a holder of the status of star in premium trading houses, subject to RBI regulations and procedures - appellant is not a nominated bank or a nominated agency or a holder of the status of star in premium trading houses and are not entitled to import gold granules - RBI’s Master Direction No. 17/2016-17 dated 1.1.2016. Held that:- As per the import policy notified by the DGFT, gold in any form, other than monetary gold, are placed under “FREE” category with policy condition subject to RBI regulations. The RBI in the master circular only prescribed regulation at Para C.11.1 for method of import and types of payment vis-à-vis credit facility by banks for gold imports by nominated agencies notified by DGFT and at Para C.11.2 for others. In fact, the RBI categorically permitted the banks to open Letters of Credit for maximum period of 90 days for importing gold in any form. Nowhere in the master circular, the RBI has notified category of persons eligible for import of gold and have not imposed any restrictions on such imports - RBI directions, at the most, are restrictions made at regulating import and export of goods in terms of restrictions on current account transactions in foreign exchange but not prohibiting import and export of goods as such. In the present case, gold granules were neither imported on a consignment basis nor on a credit basis. The importer/appellant paid an advance payment through bank Letter of Credit/Swift - the contention of the learned Commissioner (Appeals) that the Appellants are prohibited from importing gold granules, in terms of Circular No. 34/2013-CUS, dated 04.09.2013 and Circular No.27/2016-CUS dated 10.06.2016 is not legally sustainable. They are only clarificatory/procedural circulars, to give effect to the exemption contained in the above notifications, with special reference to disposal and monitoring of the gold imported, duty free, by the nominated agencies. The appellants are eligible to import gold granules, in terms of Para C.11.2 of RBI’s Master Direction No. 17/2016-17 dated 1.1.2016 to which the said notifications and circulars are not applicable - appeal allowed - decided in favor of appellant.
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