2020 (11) TMI 636

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....pellant to re-export the imported diamonds on paying the penalty and redemption fine and relegating the appellant to the appellate remedy. The judgment is challenged on the ground that there was only a procedural defect in the import carried out and there is now a certificate issued as required under Exhibit P5 Circular. It is also contended that the appellant is importing 'Uncut Diamonds' for the first time. Hence, there is only a procedural defect, which, in any event, has been cured subsequently, argues learned Counsel. In fact appellant had sought for re-export and there is no warrant for confiscation of the goods, is the alternate contention. 2. Learned Standing Counsel for the Department argued that Exhibit P5 Circular has ....

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....- Switzerland. India is a signatory to the Interlaken Declaration. 4. As per Exhibit P5, para 4(a) every imported consignment of rough diamonds is to be accompanied by Kimberly Process Certificate along with the usual trade and import documents. It is also obligatory on the part of the importer to instruct the supplier to place the certificate inside the parcel, with the certificate number replicated on the container. Further, on or before the arrival of goods, the copy of the certificate should be produced by the importer or his authorized representative along with the import documents, which would enable the Gem and Jewellery Export Promotion Council (GJEPC) to scrutinize the documents and make an endorsement of verification as provide....

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.... which country the goods were sourced from. The certificate enables export, to carry out which the appellant would have to first get the goods released by paying the redemption fee and penalty since already the goods are confiscated. 7. We also notice paragraph 7 of Exhibit P5 Circular, which is as under: "7. In case of import of rough diamonds through personal baggage, when specifically allowed under export promotion schemes like EOU/SEZ, the above said procedure will apply mutatis mutandis provided that the rough diamonds have been declared to the Customs authorities at the port of departure as well as port of arrival and other documents such as invoice, payment receipt etc. are produced to the Customs at the airport on arriva....