TMI Blog2015 (3) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out by Learned AR that Notification No. 24/2011-cus only talks of an assay certificate from the mining company to specify separately the contents of silver & gold. There is no objection by the department for accepting final assay certificate when imports are directly from the mining company when Final assay certificate of the mining company is accepted both for finalising provisional assessments and for allowing exemption under Notification No. 24/2011-cus. However, it will be unfair if appellant is disallowed exemption when final assay certificate is given by an agency other than the mining company, but Notification No. 24/2011-cus does not provide for such acceptance. For a feasible solution it will be appropriate to take the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assay certificate available at the time of import from the mining company is provisional. That samples are taken at the time of import for finding final content of gold silver by the mining company or the trader as the case may be. That the final assay certificate given by the mining company as well as the trader may contain gold silver content more or less than what was available in the provisional assay certificate. That in the case of Import directly from the mining company the final certificate given by mining company is considered for finalization of value and also the benefit of Notification No. 24/2011-Cus. dated 01/03/2011 is extended. That when the import is made through the trader the final certificate given by the trader ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the First Schedule to the Customs Tariff Act, 1975(51 of 1975), when imported into India, from so much of the duty of customs as is equivalent to the duty of customs leviable on the value of gold and silver contained in such copper concentrate, subject to the condition that the importer produces to the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, an assay certificate from the mining company specifying separately, the value of gold and silver content in such copper concentrate. Illustration.- If the total value of copper concentrate is ` 100 and value of gold and silver in that copper concentrate is ` 40, basic customs duty shall be computed on the value of ` 60 only. However, the total val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. Indeed, the appellant had requested to accept the final invoices issued by the supplier and assay certificate issued by the mining company for assessment and allow duty exemption on value of Gold Silver content considering the fact that the final assay is determined on fairly accepted international practice. I find that the appellant cannot, tread two baths simultaneously. Such assessment, as suggested by the appellant, would be inherently fallacious. There cannot be one assay report for determination of transaction value and another for determination of rate of duty/exemption from duty. It must be realized that the assessment of copper concentrate requires ascertainment of copper contents as well as contents of gold and silver. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of gold and silver increased, there may be reverse price changes in the international trade as well, to sum up, the appellant will have to get his assessment finalized based on transaction value (in tune with other terms of their contract) based on assay report of the mining company, and avail benefit of Notification No.24.2011-Cus dated 01.03.2011 for exemption from payment of basic customs duty on the value of gold and silver contained in the imported copper concentrate OR pay duty on the basis of final invoice (which is issued on the basis of load-port sampling/post-import assay reports of supplier), and forgo exemption on gold and silver contents in terms of Notification No.24.2011-Cus, supra. Since, this aspect would require approp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d have also got the contents in the copper concentrate determined by getting the samples tested either from central Revenue Laboratory or any other approved testing agency. Appellant will be eligible to the exemption in such imports also. For a feasible solution it will be appropriate to take the value content of gold silver, either in the provisional assay certificate or in the final assay certificate produced by the appellant, which ever is less, for allowing the benefit of Notification No. 24/2011-cus when final assay certificate is given by an agency other than the mining company. The directions contained in the OIA dated 21/01/2014 passed by the first appellate authorities are accordingly modified to that extent for the purpose of re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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