2023 (11) TMI 321 - HC - Customs

Court Orders Release of 22 KT Gold Jewelry with Bond; Country of Origin Check Required for Duty Exemption.

Hardik Dinesh Seth Versus The Union of India, through the Secretary, Dept. of Revenue, Ministry of Finance & Ors.

Hardik Dinesh Seth Versus The Union of India, through the Secretary, Dept. of Revenue, Ministry of Finance & Ors. - TMI Issues involved: The issues involved in the judgment are related to the clearance of '22 KT Plain Gold Jewellery (Pendent)' covered under Bill of Entry, the provisional release of the goods, and the country of origin of the imported goods for the purpose of claiming exemption from custom duty.Clearance of Goods:The petitioner filed a petition under Article 226 of the Constitution of India seeking a writ to direct the respondents to permit the clearance of the mentioned gold jewellery for home consumption. The petitioner provided all necessary documents, including Bill of Lading and Certificate of Origin, but faced delays due to queries raised by the Custom's EDI System. The petitioner sought assistance from the Consulate General of India in verifying the Certificate of Origin. The court, considering the documents provided, ordered the provisional release of the goods on the petitioner furnishing an appropriate bond for the differential duty.Country of Origin and Duty Exemption:The crucial issue in the case was determining the country of origin of the imported goods to ascertain the petitioner's entitlement to claim an exemption from payment of duty. The petitioner relied on a Notification providing for exemption from duty on imports from Indonesia. The court noted that goods imported by the same exporter for other importers had been cleared by the Revenue, indicating no irregularities. The court emphasized the need for provisional release of the goods, considering the documentation provided, and directed the Revenue to verify the authenticity of the country of origin within four weeks for necessary assessment.Conclusion:The High Court of Bombay, after considering the affidavits and documents presented by both parties, ordered the provisional release of the gold jewellery subject to the petitioner furnishing an appropriate bond. The court emphasized the importance of verifying the country of origin for duty exemption purposes and directed the Revenue to complete the verification process within a specified timeframe. The judgment was made in favor of the petitioner, and all contentions of the parties regarding the duty exemption were expressly kept open.