TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 308
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....7 as under: "The declared item in the Bill of Entry item Sl.(1) Gold Granules (non-monetary) with declared CTH 7108 13 00 (for gold in semi-manufactured form), the import is subject to RBI regulation, and nominated banks and nominated agencies, as notified by DGFT, are permitted to import gold. You are requested to justify the eligibility for the import effected." 3. It is the case of the appellant that they are a general merchant exporter and importer with valid IEC and GST registration; They are into exports, imports and trading of multi commodities since 1998; they are not a nominated agency/ bank/ status holder/ AD category-I bank to deal with the import of gold bullion and are also not into the said business and that gold granules o....
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.... reading of the relevant policy and import regulations in force, it is evident that as per the import policy notified by the DGFT, gold in any form other than monetary gold are placed under 'FREE' category with policy condition subject to RBI regulations. The RBI in the Master Circular only prescribed the regulation at Para C.11.1 for method of import and type of payment vis-à-vis credit facility by banks for gold imports for nominated agencies, notified by the DGFT and at para C.11.2 for others; nowhere in the Master Circular, the RBI has notified category of persons eligible to import gold and imposed any restrictions on import of gold. In the present case, gold granules were neither imported on a consignment basis nor on a credit ....
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....sputed by the Assessing Officer. Considering the above, he requested to permit expeditious clearance of the consignment. 6. He filed written submissions and relied upon various decisions in support of his submissions. 7. Ld. Departmental Representative appearing on behalf of the revenue filed written submissions and also filed a list of nominated agencies as authorized by RBI for import of precious metals and also relied upon the decision of Hon'ble High Court of Madras in the case of Malabar Diamond Gallery Pvt Ltd [2016 (341) ELT 65 (Madras)]. 8. Heard both sides and perused the appeal records. 9. I find that the dispute in the present case is regarding the import of gold granules of purity 99.99% (non-monetary) classifiable under cha....
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....ttances/payments and the payment method to be adopted, viz., (consignment basis, DP basis, upfront payment or LC less than 90 days etc.) for Import of goods or for that matter gold in any form. To put it differently, in the instant case the RBI regulations should be followed by their ADC-I bankers during the outward remittance/payments for import of gold by different entries. (iv) As per the import policy notified by the DGFT, the gold in any form other than monetary gold are placed under "FREE" category with policy condition subject to RBI regulations. The RBI in the Master Circular only prescribed the regulations at Para C.11.1 for method import and type of payment vis-à-vis credit facility by banks, gold imports for nominated age....
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....e outward remittance/payments for import of gold by different entities. A careful reading of the RBI/FED/2016- 17/2012 Master Direction No. 17/2016-17 dt.1.1.2016 as updated up to 12.1.2017 would show that the Circular relates to the procedure to be followed by the authorized dealer for allowing remittance of Foreign Exchange against import of goods & services into India read with Not. No. GSR 381 (E) dt.3.5.2000, issued under Foreign Exchange Management (Current Account Transaction) Rules, 2000. (vii) Only the DGFT regulations (ITC HS) stipulates the eligibility of persons who can import in the case of Gold granules and other forms of gold as mentioned in ITC HS with any conditions mentioned therein to import goods under FTP 2015-20. In t....
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....nt account transactions in foreign exchange but not prohibiting import and export of goods as such. Prohibitions are actionable in terms of Sec. 111 (b) of the Customs Act and restrictions are actionable in terms of Sec. 11 (2) of Foreign Trade (Development & Regulation) Act, 1992 as held by the Hon'ble High Court of Bombay in the case of Riddi Siddhi Bullions Ltd Vs Commissioner [2016 (333) ELT (A174)]. Accordingly, in my considered view, gold granules are not prohibited goods within the meaning of Sec. 2(32) of Customs Act, 1962. 12. Further, the Customs Act, 1962 does not authorise CBEC to impose prohibitions by way of circulars, since as submitted supra, circular is not law. Therefore, the contention of the learned Commissioner (Appeal....