Import eligibility for gold granules clarified under Customs Act, 1962 emphasizing statutory provisions over circulars.

The Tribunal held that the appellant is eligible to import gold granules under the Customs Act, 1962, based on RBI regulations, emphasizing that prohibitions on imports must be explicitly provided in the statute and not in circulars. The impugned order was set aside, and the appellant's appeal was allowed, providing consequential relief. This decision clarifies import eligibility criteria for gold granules and establishes the precedence of statutory provisions over circulars in determining import eligibility for restricted goods under the Customs Act, 1962.

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Issues:
- Import of gold granules under Customs Act, 1962
- Confiscation and penalty imposed by adjudicating authority
- Appeal against Order-in-Appeal
- Interpretation of RBI regulations and DGFT notifications
- Eligibility to import gold granules
- Legal sustainability of prohibitions imposed by circulars

Analysis:

The judgment revolves around the import of gold granules under the Customs Act, 1962. The appellant imported 1000 gms of gold granules of purity 99.99% from Jakarta, Indonesia, leading to a query on the eligibility for import. The adjudicating authority confiscated the gold and imposed a penalty under the Customs Act, which was modified by the Ld. Commissioner (Appeals). The appellant contested that they are eligible to import gold granules under relevant policies and regulations, emphasizing the absence of specific restrictions on import of gold by the RBI. The appellant also argued that RBI regulations should be followed by ADC-I bankers and not by DGFT or Customs authorities.

The Tribunal analyzed the contentions and found that the dispute centered on the eligibility to import gold granules. The revenue contended that import of gold granules is restricted to nominated banks or agencies, which the appellant did not fall under. However, the appellant argued that gold granules are freely importable subject to RBI regulations as per relevant policies. The Tribunal noted that RBI regulations primarily address payment methods for gold imports and do not restrict import eligibility based on the category of importers.

Further, the Tribunal highlighted that prohibitions on imports should be explicitly provided in the concerned statute, and circulars do not hold the force of law. The Tribunal held that the appellant is eligible to import gold granules based on RBI's Master Direction, which the circulars in question did not apply to. Therefore, the impugned order was set aside, and the appeal by the appellant was allowed, providing consequential relief.

In conclusion, the judgment clarifies the eligibility criteria for importing gold granules under relevant regulations and policies, emphasizing the legal basis for prohibitions and restrictions on imports. The decision underscores the importance of statutory provisions over circulars in determining import eligibility and sets a precedent for cases involving similar disputes regarding import of restricted goods under the Customs Act, 1962.

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