TaxTMI 
TaxTMI 
2026 (7) TMI 1203
X X X X Extracts X X X X
X X X X Extracts X X X X
....d forms of gold including sheets, plates, wires, rods, bars etc .? 3. Submission by Applicant- 3.1 Kolawar Multi Comm Private Limited, is a company venturing into Exports Imports business of Gold Articles. Gold Jewellery and other Items of Chapter 71of the first schedule of Customs Tariff Act, 1975, and to accomplish this the applicant needs to import gold in the semi manufactured forms. 3.2 The applicant is filing the present application to seek advance ruling on the HISN classification, of the gold in the semi manufactured form, and its eligibility for benefit under Notification No. 46/2011-Customs dated 01.06.2011. The subject goods comprise of semi manufactured forms of gold including sheets, plates, wires, rods, bars etc. 3.3 The applicant is of the understanding that the subject goods are classifiable under CTH 7108, and that the subject goods are eligible for the duty benefit under Notification No. 46/2011- Customs dated 01.06.2011(as amended), when imported from countries listed in the APPENDIX I, II of the said Notification. 4. Applicant's interpretation of Law :- 4.1 The present application seeking advance ruling is maintainable 4.1.1 The applican....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... - Non-monetary : 7108 11 00 -- Powder kg. kg. 10% - 7108 12 00 -- Other unwrought forms kg. 10% - 7108 13 00 -- Other semi-manufactured forms kg. 10% - 7108 20 00 - Monetary kg. 10% - 4.2.3 The Rule 1 of General Rules for the Interpretation (GIR) of the Harmonized System. mandates that goods shall be classified according to the terms of the headings and any relative Section or Chapter Notes. In the instant case, the terms of Heading 7108 unequivocally include semi- manufactured forms of gold. 4.2.4 The application of GIR 3, reinforces this position by prioritizing the heading that offers the most specific description. As Heading 7108 is tailored exclusively to gold in its unwrought, semi- manufactured, or powder states, in contrast to the more general provisions for metals or fabricated articles in other chapters. 4.2.5 The subheading 71081310, encompasses semi-manufactured forms containing 99.5 percent or more by weight of gold, and subheading 71081390 contains other forms. 4.2.6 The import policy of the subject goods was amended by Notification No. 08/2025-26 d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e First Schedule to the Customs Tariff Act, 1975 has been exempted to the extent as mentioned for the goods described in Column 3 at the rates mentioned in Columns (4 & 5) in percentage unless otherwise specified. 4.3.3 At SI. No. 966 of the amended notification, customs duty exemption applicable to all the goods falling under 7103 99 to 7118 90 have been specified. HISN 7108 13 00 is also covered in this entry. 4.3.4 The relevant part of the Notification No.46/2011-Cus dated. 01.06.2011 (as amended) is extracted below: In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 153/2009-Customs, dated the 31st December, 2009 [G.S.R. 944(E), dated the 31st December, 2009], except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods of the description as specified in column (3) of the Table appended hereto and falling under the Chapter, Heading, Sub-heading or tariff ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009, published in the notification of the Government of India in the Ministry of Finance (Department of Revenue). No. 189/2009-Customs (N.T.), dated the 31 st December 2009. 4.3.6 Therefore, the subject goods are eligible for the duty benefit under S. No 966 of the Notification No. 46/2011-Customs dated 01.06.2011 (as amended by Notification No. 38/ 2014 - Customs dated 29.12.2014). when imported from countries listed in the APPENDIX I, II of the Notification, and satisfies the Country-of-origin criteria. 4.3.7 This also implies that, even if the import policy of gold under CTH 7108 is read as "restricted" such restriction will not apply to imports from the AIFTA countries. This is because the importers cannot be denied benefit given under the India-ASEAN Trade in Goods Agreement through Non- tariff Measures. 4.3.8 Article 51 (c) of the Constitution of India gives that : "The State shall endeavour to- (c) foster respect for international law and treaty obligations in the dealings of organized pe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e it functions as a non-automatic import licensing procedure. Approval to import is not automatic: it is granted only to a pre-approved closed list of "nominated agencies". There are no published quantitative or objective criteria that any new applicant can meet to get the license. This is a direct control measure aimed at constraining the volume of gold entering the country, and therefore is a Licensing for economic reasons. 4.3.14 Further Chapter H gives Measures Affecting Competition, which are measures granting exclusive or special preferences or privileges to one or more limited groups of economic operators. The relevant entries are listed below: H1 State-trading enterprises, for importing; other selective import channels * H11 State-trading enterprises, for importing Enterprises (whether or not State-owned or -controlled) with special rights and privileges not available to other entities, which influence through their purchases and sales the level or direction of imports of particular products. Such enterprises, include statutory marketing boards with exclusive rights to control the imports of certain grains. canalizing agencies with an ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....solve such ambiguity in favour of a meaning that is consistent with the provisions of the treaty. (3) In a situation where India is a signatory nation to an international treaty, and a statute is made in furtherance of such treaty, a purposive rather than a narrow literal construction of such statute is preferred. The interpretation of such a statute should be construed on broad principles of general acceptance rather than earlier domestic precedents, being intended to carry out treaty obligations, and not to be inconsistent with them. (4) In a situation in which India is a signatory nation to an international treaty, and a statute is made to enforce a treaty obligation, and if there be any difference between the language of such statute and a corresponding provision of the treaty, the statutory language should be construed in the same sense as that of the treaty. This is for the reason that in such cases what is sought to be achieved by the international treaty is a uniform international code of law which is to be applied by the courts of all the signatory nations in a manner that leads to the same result in all the signatory nations." 4.3.18 In Union of India....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ods, when imported from countries listed in the APPENDIX I, II of Notification No. 46/2011-Customs dated 01.06:2011 is "FREE", provided the goods adhere to the provisions of the Customs Tariff [ Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009. 5. Port of Import and reply from jurisdictional Commissionerate: The applicant in their CAAR-I indicated that they intend to import the subject goods from O/o the Principal Commissioner of Customs, Air Cargo Complex, Kempegowda International Airport, Devanahalli, Bengaluru, Karnataka. The application was forwarded to the jurisdiction of O/o the Principal Commissioner of Customs, Air Cargo Complex, Kempegowda International Airport, Devanahalli, Bengaluru, Karnataka, for comments on 22.12.2025, 08.01.2026,28.01.2026 and 16:02.2026. However, no comments were received from the said Commissionerate. 6. Details of Personal Hearing: A personal hearing in this matter was conducted on 04.06.2025 at 11:30am. Advocate of Applicant raised question whether he is eligible for benefit under....
X X X X Extracts X X X X
X X X X Extracts X X X X
....portation of goods from the other Parties. The "Restricted" policy functions as a non-automatic import licensing procedure and as a measure affecting competition (classified under Chapter E and H of the International Classification of Non-Tariff Measures by UNCTAD). It is evident that the restricted import policy is a non-tariff measure, any such measure will be against the article 8 of the India-ASEAN Trade in goods agreement. Therefore. the tariff notification which is issued to give benefits of the Free Trade Agreement should not be affected by any Non-tariff measure. Such non-tariff barriers cannot negate the benefit of exemption granted under the notification. 7.4. This interpretation is favoured by the judgements of Hon'ble Supreme Court in Commissioner of Customs, Bangalore vs. G.M. Exports (2015) and Union of India vs. Agricas LLP (2020) where it was held that, when India is a signatory to an international treaty and a statute/notification is made in furtherance of such treaty, the provisions should be construed to carry out treaty obligations and not to be inconsistent with them. International treaties act as a constraint on sovereign activity. 7.5 It is to be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ountries on the ground that such restrictions constitute non-tariff measures allegedly inconsistent with the ASEAN-India Trade in Goods Agreement (AITIGA). 8.3 Maintainability of the Questions Raised Before examining the merits of the issues raised by the applicant, it is necessary to determine whether the questions fall within the scope of jurisdiction conferred upon this Authority under Chapter V-B of the Customs Act, 1962. 8.3.1 Section 28 !: (b) of the Customs Act, 1962 defines an "advance ruling" as: "Advance ruling" means a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation. 8.3.2 Further. Section 28H(2) of the Customs Act, 1962 provides that: "The question on which the advance ruling is sought shall be in respect of- (a) classification of goods under the Customs Tariff Act, 1975; (b) applicability of a notification issued under sub-section (1) of section 25 having a bearing on the rate of duty: (c) principles to be adopted for determination of value of the goods under the provisions of this ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct, 1962. The jurisdiction of this Authority is statutory and limited to the matters expressly entrusted to it under the Customs Act, 1962. No provision of Section 28H empowers this Authority to adjudicate upon: (a) the validity of the Foreign Trade Policy; (b) the legality of notifications issued by the Directorate General of Foreign Trade; (c) the consistency of domestic trade policy measures with international treaty obligations; (d) the compatibility of domestic legislation with international treaties; (e) the constitutional validity or legal sustainability of executive or legislative measures; or (f) challenges to policy decisions taken under the Foreign Trade (Development and Regulation) Act. 1992. Accordingly, while the present application is maintainable insofar as it seeks a determination regarding the classification of the subject goods and the applicability of Notification No. 46/2011- Customs dated 01.06.2011, the applicant's challenge to the import policy restrictions prescribed under the Foreign Trade Policy, and the contention that such restrictions are liable to be disregarded on account of their allege....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he heading covers silver and its alloys in the following forms and specifically includes: "(III) Bars, rods, sections, wire, plates, sheets and strip." ... 8.4.7 Therefore, by virtue of the express language of the Explanatory Note to Heading 71.08, the forms specified in the Explanatory Note to Heading 71.06 are equally relevant in determining the scope of Heading 7108. The goods proposed to be imported by the applicant, namely gold sheets, plates, wires, rods and bars, are forms specifically recognised in the HISN as falling within the ambit of Heading 7108. 8.3.8 I also note that the subject goods are not presented as articles of jewellery, goldsmiths' wares or other finished articles classifiable under the subsequent headings of Chapter 71. Rather, they are proposed to be imported as gold in intermediate forms such as sheets, plates, wires, rods and bars. Such forms remain squarely covered by the description contained in Heading 7108. 8.3.9 Since the goods are specifically covered by the terms of Heading 7108 itself. classification is determinable by application of Rule 1 of the General Rules for Interpretation. Recourse to the subsequent interpretative rul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erwise specified) 966 710399 to 711890 All goods 0.0 0.0 Accordingly. goods falling under heading, 7108 are covered within the tariff range specified at SI. No. 966 of the notification. Since gold in semi-manufactured forms is classifiable under Heading 7108, the subject goods are prima facie covered by the scope of the notification. 8.5.4 However, the notification does not operate independently of the conditions expressly incorporated therein. The notification itself stipulates: "Provided that the importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of the countries as mentioned in Appendix I or Appendix II. as the case may be, in accordance with provisions of the Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009 ... " 8.5.5 Thus, the benefit of Notification No. 46/2011-Customs becomes available only upon sati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ified by RBI or DGFT, such restrictions cannot be applied to imports originating from ASEAN countries. According to the applicant, the impugned restrictions constitute non-tariff measures within the meaning of Article 8 of the ASEAN-India Trade in Goods Agreement (AITIGA) and, consequently, cannot curtail or dilute the benefit available under Notification No. 46/2011-Customs dated 01.06.2011. 8.6.2 In support of the aforesaid contention, the applicant has relied upon Article 51(c) of the Constitution of India, Article 8 of AITIGA, the UNCTAD classification of non-tariff measures, and the decisions of the Hon'ble Supreme Court in Commissioner of Customs v. G.M. Exports [2015 (324) E.L.T. 209 (S.C.)] and Union of India v. Agricas LLP [2020 (373) E.L.T. 752 (S.C.)]. 8.6.3 At the outset, it is necessary to delineate the scope of the present proceedings. As already discussed in detail at paragraphs 8.3.1 to 8.3.6 above, the jurisdiction of this Authority is a creature of statute and is confined to the questions expressly specified in Section 28H(2) of the Customs Act, 1962. The Authority is empowered to render advance rulings only in respect of matters such as classification o....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 46/2011-Customs, in substance seek a declaration that the import policy conditions applicable to tariff items 71081310 and 71081390 should not be applied in the case of imports from ASEAN countries. Acceptance of such a contention would necessarily require a determination on the validity, legal effect and enforceability of an independently operating policy measure framed under another statute. Such an exercise travels beyond the scope of the questions that this Authority is empowered to decide. 8.6.8 The decisions relied upon by the applicant do not alter the aforesaid position. The principles enunciated by the Hon'ble Supreme Court in G.M. Exports and Agricas LLP are well settled. Where statutory language admits of ambiguity, courts may adopt an interpretation consistent with treaty obligations and the object sought to be achieved by the treaty. However, those decisions do not lay down that a statutory authority functioning within a limited jurisdiction may disregard an operative statutory provision. notification or policy measure merely because it is alleged to be inconsistent with an international agreement. 8.6.9 In the present case, there is no ambiguity in Notific....