TaxTMI 
TaxTMI 
2022 (11) TMI 958
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....1796 dated 17.07.2019 46/2020 dated 17.09.2020 Rs.22,99,891/- Vs. Rs.2,16,78,676/- 3 BE 2524137 2610775 2725472 2. The facts relevant for the adjudication of these appeals are that the appellant had imported gold coins (other than legal tenders) from South Korea. Three Bills of entry were filed by the appellants for the clearance of import of said gold coins classifying them under Customs Tariff Heading (CTH) 7114 1910. Benefit of 'NIL' rate of Basic Customs Duty (BCD) was also claimed in terms of Entry At S. No. 526 of Notification No. 152/2009- Customs dated 31.12.2009 as amended by Notification No. 66/2016 Cus dated 31.12.2016. Three of said Bills of Entry were assessed by the Customs department provisionally, on execution of PD Bonds. The department formed the opinion that gold coins, as imported, are being covered under CTH 7118 as the said heading applies to coins of any material including the precious metals. The department requested Director General, Foreign Trade (DGFT) vide letters dated 08.08.2017 and 24.08.2017 seeking clarification regarding import of gold coins. Pursuant thereto the CBEC vide letter dated 16.02.2018 conveyed that....
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....mmissioner of Customs, Bangalore reported as [2019 (368) ELT 985 (Tri-Bangalore)]. It is further submitted that goods imported herein are gold coins and this Tribunal recently in the case of M/s. Abans Jewels Pvt Ltd. vs Principal Commissioner of Customs, ACC (Imports) New Customs House IGI Airport, New Delhi in Customs Appeal No. 50192 of 2021 decided on 28.03.2022 has again held that classification of gold coins (other than legal tenders) cannot be made under CTH 7118 9000, and the correct classification is under CTH 7114 1910. The decision also has settled that gold coins are freely importable under Foreign Trade Policy. The decision has also fully relied upon Sri Exports (supra) decision. It is further submitted that the Adjudicating Authority has laid emphasis upon decision in the case of High Court of Delhi in the case of Khandwala Enterprises Pvt Ltd. vs. Union of India reported as [2020 (371) ELT 50] and that the said decision has been discussed and distinguished by this Tribunal in the case of M/s. Abans Jewels (supra) case. The decision has also held that there is no regulation or restriction imposed by RBI with respect to import of gold coins. Learned Counsel has submitt....
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....METAL - Of precious metal, whether or not plated or clad with precious metal : 7114 11 -- Of silver, whether or not plated or clad with precious metal : 7114 11 10 --- Articles Kg 15% 7114 11 20 --- Parts Kg 15% 7114 19 -- Of other precious metal, whether or not plated or clad with precious metal : 7114 19 10 --- Articles of gold Kg 15% And tariff items for 7118 reads as follows: Tariff Item Description of goods Unit Rate of Duty 7118 COIN 7118 1000 - Coin (other than gold coin), not being legal tender - Other Kg. 15% 7118 9000 Kg. 15% 10. The perusal clarifies that under CTH 7114 all articles of gold including articles of goldsmith or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal are covered. Tariff entry under CTH 7118 is specifically in respect of coins, including coins of not being legal tender and also the coins which are legal tender. The material /metal used for making coins is not that relevan....
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....esponding Explanatory Notes) (b) Coins mounted in brooches, tie-pins or other objects of personal adornment (heading 71.13 or 71.17) (c) Broken, cut or battered coins of a kind usable only as scrap or waste metal" When this note is read with description of goods under CTH 7118, it becomes clear that though tariff item 7118 specifically is with respect to coins but following coins are covered under the said entry: (1) Coins which are legal tenders in the country of issue under entry No. 7118.90. (2) Coins which are no longer legal tender or intended to legal tender (Gold coins are excluded) under entry No. 7118.10. Thus coins of any metal including precious metal if are legal tender in the country of issue, those are classifiable under CTH 7118. Also all coins of non legal tender but not of gold are covered under CTH 7118. Had the impugned goods, the gold coins, would be the legal tender in the country the gold coins could be classified under CTH 7118. OR, had these coins though of non legal tender, but would not have been made of gold, these could have been classified under CTH 7118. 13. The phrase legal tender is not defined in any tari....
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....of Chapter although a dispositive or legally binding but provide a commentary on the scope of each heading and are generally indicative of the proper interpretation of heading of chapters or entries. As already discussed above CTH 7114 covers all goldsmiths silversmiths wares of precious metal and all such things as are mentioned under note 10, as discussed above, whereas CTH 7118 applies to the coins of any metal including precious metals but the coin should be such as shall be issued under Government control for use as legal tender. Though coins of non legal tender are also covered in CTH 7118 but these coins should not be of gold. Keeping in view the entire above discussion about Chapter Notes, explanatory notes, the General Rules of Interpretation and the description of respective entries under CTH 7114 and 7118, it becomes clear that gold coins are such articles of gold which are in the form of coin, but being the coins of non legal tender, these cannot be covered under CTH 7018. These being articles of precious metals are therefore held to be covered under CTH 7114. This issue is otherwise no more res integra as has been decided by this Tribunal's Principle Bench in the case ....
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....red under CTH 7114 and no restrictions / prohibitions exists on Imports of such gold coins till 24.08.2017. Relevant portion of the letter read as "4. In this context, it is stated that gold coins other than legal tenders are excluded from CTH 7118 as per explanation provided in HSN Explanatory Notes and therefore, the same are covered under CTH 7114. As per import policy given in ITC (HS) Schedule 1 for CTH 7114, policy for imports of the goods covered under the said heading is 'Free' without any policy conditions. Further, reference is also made to RBI Master Circular No. 17/2016-17 dated 01.01.2016 updated as on 12.01.2017 (as available on RBI website). As per para C.11.1.iv of the said Master Circular, "The import of gold coins and medallions is permitted. 5. In view of the above, this office is of the view that gold coins other than legal tender are covered under CTH 7114, that is an article of gold struck in the form of coin and there was no bar till 24.08.2017 on import of such gold coins. However, the matter is being brought to your kind notice for necessary clarification." 18. The DGFT has also issued Notification No. 25/ 2017 dated 25.08.2017 ....