Customs' reliance on 'Alert Circular' for scrutinizing imported gold jewellery deemed incorrect by the Court

The Court held that Customs' reliance on the 'Alert Circular' for scrutinizing imported gold jewellery under preferential trade agreements was incorrect as there was no doubt about the Certificate of Origin's genuineness. The responsibility to verify rested with the concerned AC/DC, and provisional assessment was only for cases of doubt. Customs were directed to finalize the assessment promptly, preferably within a fortnight but not exceeding three weeks. The writ petition was disposed of accordingly, with urgent certified copies of the order to be provided to the parties' advocates.

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Issues:
Competent authority verification of original documents for imported consignment of gold jewellery under preferential trade agreements.

Analysis:
The judgment revolves around the issue of whether the competent authority verified the original documents submitted by the importer for the imported consignment of gold jewellery under preferential trade agreements. The Customs authorities relied on a Standing Order dated 22nd February, 2012, for exemption of basic customs duty based on a Certificate of Origin. However, a Directorate of Revenue Intelligence 'Alert Circular' dated 19th June, 2015, required Customs to scrutinize imports of gold jewellery and request information on compliance with Rules of Origin before assessing provisionally.

The Court found that the reliance on the 'Alert Circular' by Customs was misplaced as there was no doubt regarding the genuineness of the Certificate of Origin. The responsibility to verify the Certificate of Origin rested with the concerned AC/DC, and provisional assessment was only necessary in case of doubt. Customs shifting this responsibility to the Directorate of Revenue Intelligence was deemed incorrect as per the 'Alert Circular.'

Consequently, the Court directed Customs to finalize the assessment of the imported gold jewellery expeditiously, preferably within a fortnight but not later than three weeks from the date of communication of the order. The writ petition was disposed of accordingly, and urgent certified copies of the order were to be provided to the advocates for the parties.

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