Court sets aside import seizure, orders reclassification under CTH 7113 1910 within 5 days.

The court allowed the Writ Petition, setting aside the seizure of the import consignment. The respondents were directed to assess the Bill of Entry, classifying the goods under CTH 7113 1910 within five days and bear the warehousing charges until release.

---

---

Issues Involved:
1. Legality of the seizure of imported gold pendants.
2. Classification of the imported goods under the Customs Tariff.
3. Applicability of the Import Policy and Foreign Trade Policy.
4. Compliance with procedural requirements for import clearance.
5. Validity of the respondents' actions regarding the import consignment.

Issue-wise Detailed Analysis:

1. Legality of the Seizure of Imported Gold Pendants:
The petitioner challenged the respondents' action of seizing the imported gold pendants weighing 5 kgs under Bill of Entry No. 3892849 dated 10.05.2021. The seizure was conducted under a Panchanama drawn on 05.06.2021. The petitioner contended that the seizure was illegal, mala fide, and motivated. The court took note of the sequence of events and the respondents' actions following the filing of the Writ Petition.

2. Classification of the Imported Goods under the Customs Tariff:
The petitioner classified the imported goods as "Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal" under Custom Tariff Trading No. 7113 19 10, claiming they were "freely importable." Conversely, the respondents argued that the goods should be classified under Chapter Heading 7108-12-00 as "Gold - Other unwrought forms - Non Monetary," which is restricted under the Import Policy. The court analyzed the nature of the goods, noting they were fully worked and finished, thus falling under the classification of "Articles of Jewellery, of gold, unstudded" (7113 19 10).

3. Applicability of the Import Policy and Foreign Trade Policy:
The court examined the relevant provisions of the Import Policy and Foreign Trade Policy, including the Main Notes and Supplementary Notes of Chapter 71. The court concluded that the amendment of the policy condition by Notification No. 36/2015-2020, dated 18.12.2019, applied only to specific goods under Exim Code 7108 and not to finished forms of gold like "Articles of Jewellery" falling under Exim Code 7113.

4. Compliance with Procedural Requirements for Import Clearance:
The petitioner complied with the procedural requirements by submitting the necessary documents and responding to the queries raised by the respondents. Despite this, the respondents issued piecemeal queries and delayed the clearance process. The court noted that the respondents did not dispute the classification of the goods until the petitioner filed the Writ Petition. The court found that the respondents' actions were contrary to the circular issued by the 2nd respondent, which directed officers to raise all queries in one go.

5. Validity of the Respondents' Actions Regarding the Import Consignment:
The respondents claimed that the imported goods were misclassified as "Articles of Jewellery" to avoid the restrictive policy condition applicable to gold in unwrought forms. The court disagreed, stating that the goods were in a finished condition and thus rightfully classified under 7113 19 10. The court also noted that similar imports had been cleared by the respondents at different ports. The court found the respondents' seizure of the goods to be unjustified and directed the assessment of the Bill of Entry as filed by the petitioner.

Conclusion:
The Writ Petition was allowed, and the seizure of the import consignment affected on 05.06.2021 was set aside. The respondents were directed to assess the Bill of Entry No. 3892849 dated 10.05.2021, classifying the goods under CTH 7113 1910, within five days. The respondents were also ordered to bear the warehousing charges for the imported consignment until its release. Consequently, I.A. No. 4 of 2021 was dismissed.

---