Pre-forms of semi-precious stones were not covered by the earlier customs exemption and remained taxable at tariff rate.

Imported pre-forms of semi-precious stones were treated as an intermediate product between rough stone and cut or polished stone, not as rough semi-precious stones covered by the exemption entry in Notification No. 12/2012-Cus. The later insertion of a specific concessional entry for pre-forms of precious and semi-precious stones from 01.03.2013 indicated that no such benefit existed for the earlier period. On that basis, the classification adopted by the lower authorities was upheld and the goods remained liable to duty at the tariff rate.

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Issues: Whether pre-forms of semi-precious stones imported during the relevant period were entitled to the concessional rate of duty under Notification No. 12/2012-Cus, or were liable to duty at the tariff rate as semi-precious stones otherwise worked.

Analysis: The goods were held to be pre-forms, i.e. an intermediate stage between rough stone and cut and polished stone, and therefore not the same as rough semi-precious stones covered by the exemption entry for rough stones. The amended notification introduced a specific entry for pre-forms of precious and semi-precious stones at a reduced rate from 01.03.2013, which supported the view that no such concessional entry existed for the earlier period. On that basis, the classification and duty demand confirmed by the lower authorities were upheld.

Conclusion: The imported pre-forms were not eligible for the concessional rate under Notification No. 12/2012-Cus during the period of import and were correctly subjected to duty at the tariff rate.

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