2012 (7) TMI 388 - AT - Customs

Whether the imports made by the respondents, by declaring the same as gold mountings and findings, bangles, necklaces, earrings etc. are entitled to the benefit of Notification No. 62/04 Cus or same have to be considered as gold jewellery liable to customs duty Held that - Gold mountings and findings being items as jewellery are outside the purview of the Notification No. 62/2004 and the Board s circular No. 40/2004-Cus dated 4.6.2004 and 13/06-Cus dated 29.3.06 clarifying that gold and silver mountings and finding are covered by Notification No. 62/2004-Cus are contrary to the provisions of law and hence have no validity In favor of assessee

Summary

Issues involved:
Interpretation of Notification No. 62/04 Cus regarding imports declared as gold mountings and findings.

Analysis:

Issue 1: Interpretation of Notification No. 62/04 Cus
The Appellate Tribunal, CESTAT, New Delhi, heard an appeal filed by the Revenue against an order by the Commissioner of Customs, New Delhi. The central issue was whether imports declared as gold mountings, findings, bangles, necklaces, earrings, etc., were eligible for the benefits under Notification No. 62/04 Cus or should be considered as gold jewellery attracting customs duty.

Issue 2: Precedent and Legal Interpretation
The Tribunal noted that a similar issue had been addressed in a previous case involving CCE, Jaipur vs. V.K. International and others. In that case, the Tribunal allowed the Revenue's appeals by ruling that gold mountings and findings, being classified as jewellery, did not fall under the purview of Notification No. 62/2004. The Tribunal also found that certain Board circulars supporting a different interpretation were inconsistent with the law. Following the precedent set in the earlier case, the Tribunal set aside the impugned orders and ruled in favor of the Revenue in the present appeal.

Issue 3: Decision and Consequences
Consequently, the Tribunal confirmed the duty proposed in the show cause notice, along with interest, in favor of the Revenue. The decision was pronounced in open court on 12.6.12 by Ms. Archana Wadhwa on behalf of the Bench.

This judgment clarifies the interpretation of Notification No. 62/04 Cus in relation to imports declared as gold mountings and findings, providing a legal precedent for similar cases and upholding the Revenue's position in this particular appeal.