2019 (5) TMI 1477 - HC - Customs

Benefit of N/N. 25/2001-Cus dated 1st March 2001 - Exemption from Gold and Silver produced out of Copper Anode Slime (CAS) after export of such CAS out of India for toll smelting and toll processing - HELD THAT - Since one aspect of the matter viz., that no permission of the RBI is required, stands clarified, it is now for the Respondents to take a decision on whether the Petitioner should be granted exemption in relation to the gold/silver that it seeks to import in accordance with notification No. 25/2001-30 Cus dated 1st March 2001. The Court finds justification in the plea of the Petitioner that Respondents should not deny the exemption only because the period of one year in terms of the said notification for completing the import has already been crossed. Had the Petitioner been issued a proper clarification in reasonable time then it could have completed the exercise by now. It is directed that subject to the Petitioner ensuring that the actual import of the gold/silver extracted from the CAS that was exported on 10th October 2017 is now completed within 60 days from today and in any event not later than 31st July 2019, the Respondents will take a decision on whether the Petitioner should be granted exemption in terms of notification No.25/2001-Cus. - Petition disposed off.

Summary

Issues:
1. Clarification on procedure for availing customs duty exemption for gold and silver imported into India.
2. Clarification on procedure for re-import of gold and silver extracted from Copper Anode Slime (CAS).
3. Requirement of RBI approval for import of gold/silver.
4. Time limit for completing import process under Notification No.25/2001-Cus.

Analysis:
1. The petitioner, engaged in manufacturing copper products, sought clarification on the procedure to avail customs duty exemption for gold and silver imported into India under Notification No.25/2001-Cus. The petitioner exported Copper Anode Slime (CAS) for toll smelting and toll processing and intended to import gold and silver extracted from it back into India.
2. The petitioner also sought directions for the re-import procedure of gold and silver extracted from CAS. The Central Board of Indirect Taxes & Customs (CBIC) and Reserve Bank of India (RBI) were involved in providing necessary clarifications for compliance with the notification.
3. The RBI clarified that its permission for the import of gold after processing from CAS was not required, shifting the responsibility of clarification to other respondents. The petitioner argued that the exemption should be considered without prior RBI approval, especially since the delay in seeking clarification had caused the one-year time limit for import to lapse.
4. The High Court directed the respondents to decide on granting exemption to the petitioner for importing gold and silver within 60 days, irrespective of the one-year limit being crossed. The petitioner was required to ensure completion of import within the specified timeline and prove that the imported gold and silver were extracted from the exported CAS. The respondents were instructed to convey their decision by a specified date, allowing the petitioner to seek further legal remedies if needed.