2025 (9) TMI 487

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....terms of section 28 of the Customs Act, 1962 read with the notification no. 57/2000-Cus dated 8.5.2000, as amended; (ii) I appropriate an amount of Rs. 73,52,985/- [Rupees seventy three thousand fifty two thousand nine hundred and eighty five only] already paid by them towards duty confirmed at (i) above; (iii) I order for payment of interest, as applicable in terms of section 28AA of the Customs Act, 1962, on the customs duty mentioned at (i) above; (iv) I appropriate an amount of Rs. 3,26,547/- [Rupees Three lakhs Twenty Six Thousand Five Hundred and Forty Seven only] already paid by them towards interest liability at (iii) above; (v) I order for confiscation of 25 kg of gold valued at Rs. 7,13,88,200/- under section 111(o) of the Customs Act, 1962 imported without payment of duties under the Notification no. 57/2000- Cus dated 8.5.2000 and diverted/sold in local market by them. However, I refrain from imposition of redemption fine as the goods are not physically available; (vi) I impose penalty of Rs. 5,00,000/- (Rupees Five Lakhs only) on M/s PH Jewels under section 112(a) of the Customs Act, 1962; (vii) I impose penalty of ....

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....rted, MMTC secured itself by asking the jewellery exporters to deposit the duty with them so that if the exporter fails to export jewellery, MMTC can pay the duty. It has been the general practice of all nominated agencies to secure the duty amount by asking the exporter to deposit an amount equal to the duty or ask for a bank guarantee, etc. 6. DRI received information that PH Jewels had diverted the duty free gold into domestic market instead of exporting jewellery made out of it and initiated investigation. It issued summons to Shri Sanjay Agarwal and to Smt. Radhika Agarwal, Proprietrix of PH Jewels and recorded their statements under section 108 of the Customs Act, 1962 [The Act]. This led DRI to conclude that PH Jewels had exported gold jewellery with 25 kg gold content bought from M/s. Kalpataru Jewellers and Exporters Corporation, Hyderabad to fulfill the export obligation against the imported gold and that PH Jewels had diverted imported gold and sold it in the domestic market. 7. Forming an opinion that the gold imported claiming exemption under notification no. 50/2007-Cus could not have been diverted to domestic market and it should only have been used to manufact....

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....Scheme for 'Export through Exhibitions/Export Promotion Tours/Export of Branded Jewellery' as referred to in Paragraph 4.46 of the Foreign Trade Policy, read with relevant provisions of Chapter 4 of the Handbook of Procedures (a) Gold 11.85%     (b) Silver 11.00%     (c) Platinum Whole of the duty of customs leviable thereon, which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) 2. Under The Scheme For 'Export Against Supply by Nominated Agencies' as referred to in Paragraph 4.41 of the Foreign Trade Policy, read with relevant provisions of Chapter 4 of the Handbook of Procedures Gold, Silver, Platinum Whole of the duty of customs leviable thereon, which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) 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 fulfil the conditions of Foreign Trade Policy and relevant provisions of the Handbook of Procedures, Volume-I and produces such documents as stipula....

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....h the SCN and the impugned order are as follows: "In terms of para 4.31 of FTP 2015-20, Exporter of jewellery can procure duty free input for manufacture of export product. Further, in terms of para 4.34 of FTP 2015-20, Exporter of gold/silver/ platinum jewellery and articles thereof including mountings and findings may obtain gold/silver/plantinum as an input for export product from Nominated Agency, in advance or an replenishment after export in accordance with the procedure specified in this behalf" ( para 9.3 of the SCN). 14. What emerges from the above is that while the exemption notification does not stipulate that only imported gold should be used to manufacture goods for export, the FTP specifically provides that gold can be procured duty free either in advance or as an replenishment after export. It is only the CBEC's circular, which is in the nature of instructions to the officers by the Board, stipulated that the imported gold must be used only for export. 15. A well settled legal principle is that there is no scope for intendment in taxation. Whatever is the law must be enforced regardless of the consequences. The law in question is the Customs Act, 1962 ....