TaxTMI 
TaxTMI 
2021 (9) TMI 686
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....ery for exports by converting into jewellery and for home consumption after filing ex-bond Bill of Entry by paying appropriate duty under 20/80 scheme. 3. They imported gold bars vide 2 Bills of Entry dated 25.2.2014 and 16.10.2014. Out of 300 kgs of gold bars imported vide each Bill of Entry, 80% of the imported gold bars i.e.; 240 kgs. on each import was debonded on payment of sold to domestic buyers and balance 60 kgs on each Bill of Entry was available for export purpose. 4. Against the 60 kgs of gold available for export purpose, it was distributed to various Jewellery Manufacturers by M/s. Bank of India vide Different DC Nos. Against that distributed Gold, respective gold manufacturers had converted the distributed Gold Bars into Gold Jewellery and exported thereof vide different Shipping Bills. Later M/s.Bank of India had submitted Copies of Customs Attested Invoice, Copies of Shipping Bills, Copies of E-BRCs as proof of export to this office except for 20kg of Gold. 5. It was observed that M/s Bank of India had distributed gold to M/s.Atlas Jewellery Pvt Ltd. for export after conversion into jewellery. The said exporter had converted Gold Bars into Jewellery and ex....
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.... in Appendix 22A 10. The Circular No.34/2013-Customs dated 04.09.2013 also stipulates the proof of exports as follows : "xiv. proof of export by the exporter shall be furnished in accordance with para 4A.8(a) of HBP V.1, to the nominated agencies as a proof of having exported the jewellery made from the duty free gold released to them within the period prescribed in the Foreign Trade Policy. The Nominated Agency shall furnish a self-certified copy of the same to the customs officer where the gold was bonded;". It is to be noted that these provisions were relaxed and a Public Notice No.25/(RE-2013)/2009-2014 dated 06.09.2013 was issued. Paragraphs 2,3 & 4 of the above Public Notice read as follows : " 2. Para 4A.8(a) stipulates what may constitute "Proof of Export" and lists three specific documents as under : (i) E.P.copy of the shipping bill; (ii) Customs attested invoice; (iii) Bank certificate of realisation in Appendix 22A 3. Only in respect of export of gold jewellery and export of articles of gold, the document listed at (iii) above, namely "Bank certificate of realisation in Appendix 22A" will not be insisted upon s....
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.... cannot stretch the conditions of the notification beyond what is required under law. Secondly, upon submission of export documents, the customs authorities were satisfied with the evidence regarding compliance with the conditions of notification and accordingly, cancelled the bond after due verification and returned the same. Under such circumstances, it is not open to the respondent to rely on the cancelled bond and confirm demand for duty. 15. The Ld. Counsel relied upon the decision in the case of Bank of Nova Scotia Vs CCE (Adj.) Bangalore 2009 (233) ELT 260 (Tri.-Bang.) and submitted that the Tribunal in identical set of facts has held that it is not obligatory for the nominated agency to file BRC. He prayed that appeal may be allowed. 16. The Ld. A.R. Ms. K. Komathi supported the findings in the impugned order. 17. Heard both sides. 18. At the outset, it has to be stated that the demand of duty is raised alleging violation of conditions of the Customs Notification and thereupon invoking the liability under the bonds executed by the appellant. After the appellant furnished export details, the bonds executed have been cancelled. The bonds were cancelled only after ....
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....ces) Regulations, 2000. 16. The nominated agency can import gold duty free subject to the conditions of notification 57/2000. The said condition is given in Proviso to the notification and we are reproducing the said notification. "Provided that in the case of import of gold/silver/platinum as replenishment under the scheme for 'Export through Exhibitions/ Export Promotion Tours/Export of Branded Jewellery', the importer undertakes to fulfill the conditions of Export and Import Policy and relevant provisions of the Handbook of Procedures, Volume-1 and produces such documents as stipulated in the Export and Import Policy and the Handbook of Procedures, Volume-1 and produces such proof of exports made through exhibitions/export promotion tours etc., as may be required by the Assistant Commissioner of Customs or the Deputy Commissioner of Customs to satisfy himself with regard to eligibility of the importer for the duty free import of replenishment material." 17. A close reading of the above proviso shows that the nominated agency who is the importer, executes a bond undertaking to export the jewellery containing gold equal to the imported gold. In case, the....
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.... monthly statement prescribed in Para (x) above. The Nominated Agencies will settle their claim with the exporter at their own level;" 18. A close reading of the above provision shows that nowhere it is stated that non-realization of sale proceeds will result in demand of Customs duty foregone from the nominated agency. 19. It should be borne in mind that even though the first appellant is the importer, the exporter is different. In this case, the exporter is the second appellant. All goods exported from India result in realization of foreign exchange as sale proceeds. Matters relating to foreign exchange are governed by Foreign Exchange Management Act (FEMA). The Customs Authorities are not enforcing the provisions relating to non-realization of foreign exchange. If at all there is violation of FEMA and the related regulations, the liability would be on the exporter, suitable action lies with the enforcement authorities and Reserve Bank of India. With regard to the violations of exim policy, adjudication can be done only by authorities notified under Section 13 of Foreign Trade (Development & Regulation Act) 1992. The first appellant imported the goods and warehoused the ....