TMI Blog2019 (11) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... on satisfaction has allowed the clearance of re-imported gold jewellery and had endorsed that the imported gold jewellery was same which had been exported under the two shipping bills - the Department has not adduced any evidence to establish that the re-imported gold jewellery is not which have been exported by the appellant for exhibition purpose - also there might have been certain violations in following the procedure for proper importation of these goods, however, same will also not make the Indian made gold jewellery as prohibited goods as per the provision of Customs Act, 1962 read with the provisions of the Import-Export Policy 2015-2020. It is also matter of record that documents as required for re-import of the exported goods as provided under Notification No. 45/2017 dated 30 June 2017, read with the clarification No. 21/2019 dated 24 April 2019 is that the goods should be same as has been exported for the exhibition purpose and in the present case it is not mentioned by the Department that re-imported goods are not the same which have been exported vide above-mentioned two shipping bills for the exhibition purpose - the appellant has a strong case for provisional r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Scheme, appellant is entitled to import upto 1,000 Kg. of gold. The appellant keeps proper records of its business transactions, which are subject to audit under various tax laws. 4. Advance Authorisation Scheme: Under the Advance Authorisation Scheme, in terms of para 4.37 of FTP, Handbook of Procedure, 2015-20, read with Customs Notification No. 18/2015 dated 01.04.2015, appellant imports gold, wherein the gold bar(s) have unique identification Nos., which are mentioned in the packing list filed with the Bill of Entry. Out of last import of 50 Kgs. vide Bill of Entry No. 2873828 dated 17.04.2019, stock of 31.1 kg. have been detained by DRI, from the registered workshop cum business premises on 25.04.2019. the details of seizure are- 25,000 gms Gold bars (25 Nos.) 26,404 gms W.I.P. (gold bar pieces, gold dust, assorted gold jewellery) 5. Out of above, it is urged that gold bars weighing 22 kg. (22 nos.) tallies with packing list forming part of bill of entry No. 2873828. Part of gold under the said bill of entry was us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24.4.19 Registered in advance 25,299.680 24.4.19 unregistered 8. Mr. Amit Pal Singh filed proper re-import declarations/ Bills of entry (at red channel) and post inspection and after proper assessment, inspection and verification by proper officer of customs (jewellery export appraiser), was given gate pass (out of charge). After crossing the customs post (red channel), the DRI intercepted Mr. A.P. Singh and seized all the gold jewellery, on the allegation of some procedural lapse. All the supporting documents such as assessed Bills of entry, packing list, export documents, photographs with gate-pass, relating to jewellery seized were available with Mr. A.P. Singh. 9. The appellant, pursuant to seizure on 24/25 April, 2019, applied to the Director General, DRI for release of detained goods on 08.05.2019. Again by application dated 31.07.2019 applied for provisional release, explaining in detail the source and licit possession. As the detained/ seized jewellery and bars etc. were not released, appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecognizes only two types of goods namely: (1) those that are prohibited; and (2) those that are not prohibited. The Act also recognizes the fact that even prohibited goods could be imported or exported subject to certain conditions. If those conditions are fulfilled, prohibited goods would automatically become non-prohibited goods. 86. If there is a fraudulent evasion of the restrictions imposed, under the Customs Act, 1962 or any other law for the time being in force, then import of gold, in contravention of the above, is prohibited. 7.3 In view of above mentioned citations on restricted and prohibited goods, it appears that it would be premature to arrive at any conclusion, about provisional release of seized goods, before completion of adjudication proceedings. 8. Accordingly, the application by M/s Its My Name Pvt. Ltd. for provisional release of the seized goods is disallowed . 13. The learned Counsel for the appellant, assailing the impugned order urges that the impugned order is in violation of the provisions of Section 110A of the Customs Act, which provides that pending adjudication, the goods, documents, etc. b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erification that the imported jewellery was same which have been exported. 19. Further urged that advance registration of bill of entry for re-import is not required as per para 3 of SOP dated 18.12.2018, which stipulates that the bill of entry has to be registered preferably in Advance . 20. It has further been submitted that the imported seized jewellery have licitly been re-import after conclusion of jewellery exhibition abroad. There is not an iota of doubt or evidence to allege that the re-imported gold jewellery is not the same which have exported vide shipping bills dated 20.02.2017 and 13.3.2019. The learned Advocate has thus contested that seizure of India made gold jewellery, which was exported abroad for exhibition and being re-imported, is legally not tenable and therefore by no stretch of imagination same can be termed as prohibited goods and need to be released forthwith. 21. Further, urged that, so far gold bars and jewellery seized at the factory premises at Pitampura is concerned, the said premises is a bonded (with customs) premises. Thus, the gold jewellery is to be properly accounted for, as regards receipt, usage, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been seized at IGI Airport by Directorate of Revenue Intelligence, totaling weighing of 50699.74 gms. Is covered by two bill of entries: bill of entry No. 107190 dated 26 February 2019 giving a job No. 109524 dated 26 February 2019 which covers a quantity of 25.4000 kg. of gold jewellery, same has been assessed by the Assessing Officer on 24 April 2019. There is another bill of entry which is without any bill of entry registration number and without any job number, however, same has also been assessed as per the learned Advocate for the appellant on 24 April 2019. This bill of entry also covers a gold jewellery weighing 25.209 kg. Thus, we find that importing person Shri Amit Pal Singh has presented the gold jewellery which was being imported on 24 April, 2019 to the Assessing Officer and has claimed that the gold jewellery is India made which is being re-imported after same had been exported for exhibition purpose vide shipping bill No. 117209 dated 20 April 2019 covering quantity of 33.805 kgs. and vide shipping bill No. 117932 dated 13 March 2019 under which jewellery weighing 25.299 kg. was exported. It is a matter of record that at the time of the re-import of balance quanti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been defined as follows : Prohibited goods mean any goods the import or export of which is subject to prohibition under this Act or any other law for the time being in force but does not include any such goods in respect of which the conditions subject to which the goods are permitted to be imported or exported have been complied with . When we analyse the seizure of India made gold jewellery at the IGI Airport in the light of above defition, we find that the gold jewellery was being re-imported after export of the same for exhibition purpose following the laid down procedure and standard operating procedure, barring a few minor lapses, and therefore the consignment of re-imported jewellery cannot be equated with import of prohibited goods. Thus, we find that the appellant has a strong case for provisional release of re-imported jewellery as per the provisions of Section 110A of Customs Act, 1962. 28. So far as the seizure of 25 gold bars (one kg. each) totaling weighing 25 kg. and cut pieces of gold bars, gold dust and assorted gold jewellery weighing 26404 gms. and certain silver bars and cut pieces weighing 44908 gms. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant duly declared the goods under re-import at the Customs post (Red Channel). After examination, was issued Gate-Pass. The ruling in the case of Jagdev Damodaran (Supra) is also not applicable, as in that case the passenger, NRI brought a Drone (Restricted item), for which license was required. 30. We also find that under the facts and circumstances, the appellant is an established business concern registered with the Customs dept, DGFT, Income Tax, GST, etc. Due to seizure of almost the whole working capital (Goods, raw material, W.I.P.), for over 6 months, the appellant is facing difficulty of livelihood, it s workmen, and others too. The appellant is also incurring regular fixed cost or establishment cost, unable to fulfill its time-bound export obligation, resulting in irreparable loss and civil consequences. The balance of convenience lies in allowing provisional release in favour of the appellant. We thus allow provisional release on the following terms:- (i) Bond for full value of the seized goods (ii) The bond be backed by Bank Guarantee of ₹ 1.25 crores, with auto renewal clause in favor of the revenue authority. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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