TMI Blog2018 (12) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... etters 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods on payment of redemption fine of ₹ 1 lakh solely for the purpose of re-export. He upheld the penalty imposed on the appellant under Sec.112 (a) (i) of the Customs Act, 1962 but however reduced the penalty to ₹ 50,000/-. Hence, the present appeal before the Tribunal. 5. Ld. Advocate appearing on behalf of the appellant submits that the requirements/conditions of (i) Permitted through nominated agencies subject to RBI regulation prescribed procedure (ii) RBI regulations CBEC CIR 28/2009-CUS Dt.14.10.2009 are self contradictory and inconsistent with import policy notified by the DGFT and import regulations prescribed by the RBI. On harmonious reading of the relevant policy and import regulations in force, it is evident 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 the regulation at Para C.11.1 for method of import and type of payment vis- -vis credit facility by banks for gold imports for nominated agencies, notified by the DGFT and at para C.11.2 for others; nowhere in the Master C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port of gold granules of purity 99.99% (non-monetary) classifiable under chapter heading 7108 13 00 of the Customs Tariff Act, 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, prescribed in this regard. Since the appellant is not a nominated bank or a nominated agency or a holder of the status of star in premium trading houses, the restrictions, procedures and clarifications issued by the RBI, relating to import of gold/gold granules do not entitle the appellant to import the gold granules in question. 10. It is the case of the appellant that, (i) In terms of the ITC/HS 2017 Import Policy and in particular, Sec. XIV vide Chapter 71, would show that the Non-Monetary Gold/Gold granules (other semi manufactured forms) are classifiable under CTH 7108 13 00 and they are freely importable but subject to RBI regulations. (ii) The DGFT has not notified that the RBI can impose any restrictions under the Foreign Trade (Development Regulations) Act 1992. Further, the Central Board of Excise and Custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y can adopt payment method (consignment basis, DP basis, upfront payment or LC less than 90 days etc.) for import of gold in any form. Therefore, the said direction of RBI is meant only to be followed by their ADC-I bankers during the outward remittance/payments for import of gold by different entities. A careful reading of the RBI/FED/2016- 17/2012 Master Direction No. 17/2016-17 dt.1.1.2016 as updated up to 12.1.2017 would show that the Circular relates to the procedure to be followed by the authorized dealer for allowing remittance of Foreign Exchange against import of goods services into India read with Not. No. GSR 381 (E) dt.3.5.2000, issued under Foreign Exchange Management (Current Account Transaction) Rules, 2000. (vii) Only the DGFT regulations (ITC HS) stipulates the eligibility of persons who can import in the case of Gold granules and other forms of gold as mentioned in ITC HS with any conditions mentioned therein to import goods under FTP 2015-20. In terms of Chapter 71 of the Customs Tariff, goods falling under 7108/7113/7114/7118 are FREELY importable. Therefore, any importer is eligible to import gold in any form unless it is restricted like monetary gold wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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