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TMI Blog2019 (5) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... of Gold Granules of Purity 99.99% weighing net one kilogram and falling under CTH 71081300 of the Customs Tariff Act, 1975 valued at Rs. 29,95,524/- and as per the Bill of Entry, the said goods have been imported vide Invoice NO.030/AU/LN/LM/2017 dated 20.09.2017 from PT ANTAM (Persero) Tbk, Precious Metal Processing & Refinery Business Unit, Jakarta-13260. The said Bill of Entry was ordered for open examination and as per the examination report dated 30.10.2017, the shipment was found to contain Gold Granules, and description and weight tallied with the import documents and purity was found to be 99.99%. The Department entertained the view that the said import is in violation of the Import Policy because as per Import Policy, Gold Granule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further submitted that the main allegation against the importer is that he has violated the Import Policy under which import of Gold Granules of Purity 99.99% falling under CTH 71081300 is permitted only through a Nominated Bank or a Nominated Agency subject to RBI Regulation and prescribed procedure whereas the present importer is admittedly not a Nominated Bank or a Nominated Agency, or a Holder of Star and Premier Trading Houses and as such not eligible to import the Gold Granules and further RBI Regulation do not permit the importer to import the Gold Granules in question. He further s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rading Houses can import gold on document against Payment (DP) basis as per entitlement without any end use restrictions. 4.1. He further submitted that in the present case, the importer has not imported Gold Granules on consignment basis or on DP basis and therefore is not required to be Nominated Agency or Nominated Bank or Star and Premier Trading Houses and therefore Para C.11.1 of RBI Circular does not relate to general importer. He further submitted that the present importer is a general importer and not a Nominated Agency or a Status Holder of Star and Premier Trading Houses. Further, the appellants have made advance payment (upfront payment) to the foreign supplier and therefore the condition stipulated in C11.2 of the RBI Regulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Granules of Purity 99.99% (Non-Monetary) classifiable under Chapter Heading 71081300 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 Status of Star and Premier Trading Houses, subject to RBI Regulation and procedure prescribed in this regard. Since the appellant is not a Nominated Bank or a Nominated Agency or a Holder of Status of Star and Premier Trading Houses, the restriction procedures and clarifications issued by the RBI relating to import of Gold/Gold Granules do not entitle the payment to import the Gold Granules in question. Further, I find that as per the Import Policy, in terms of ITC/HS 2017 and in partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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. I find that the 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 go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. C/30812/2018 appellant was prohibited from importing gold is farfetched and without any legal basis. 13. In view of the above discussions, I hold that 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 01.01.2016 to which the said notifications and circulars are not applicable. Accordingly, the impugned order is set aside and the appeal filed by the appellant is allowed with consequential relief, if any." 7. Since the issue involved in the present appeal is identical which has been settled in his favour by CESTAT Hyderabad Bench cited supra, therefore by following the ratio of the said decision, I am of the considered view that the impugned order is not susta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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