2023 (11) TMI 321 - HC - Customs

Seeking provisional release of 22 KT Plain Gold Jewellery (Pendent) - country of origin of the goods - benefit of Notification dated 1st June 2011 (Notification No. 46/2011-Cus) - HELD THAT - It is observed that the goods dealt by the very same exporter with the other importers in the country have been cleared by the Respondent-Revenue. Hence according to the Petitioner, it cannot be a case that in the face of the documents as provided the foreign exporter would indulge into any irregularity in relation to the agreement in question in regard to supply on the origin of the goods imported by the Petitioner. Thus, the contention of the Revenue is only in the context of duty i.e.; whether the Petitioner qua the goods in question would at all be entitled to claim an exemption from payment of duty. The goods ought not to suffer any further detention and they are required to be provisionally released, on the Petitioner furnishing an appropriate bond for the differential duty, more particularly considering the letter dated 30th October 2023 as issued by Mr. Mulyadisimatupang as addressed to the Ambassador of Indian Embassy in Indonesia. Ordered accordingly. Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment are related to the clearance of "22 KT Plain Gold Jewellery (Pendent)" covered under Bill of Entry, the provisional release of the goods, and the country of origin of the imported goods for the purpose of claiming exemption from custom duty.

Clearance of Goods:
The petitioner filed a petition under Article 226 of the Constitution of India seeking a writ to direct the respondents to permit the clearance of the mentioned gold jewellery for home consumption. The petitioner provided all necessary documents, including Bill of Lading and Certificate of Origin, but faced delays due to queries raised by the Custom's EDI System. The petitioner sought assistance from the Consulate General of India in verifying the Certificate of Origin. The court, considering the documents provided, ordered the provisional release of the goods on the petitioner furnishing an appropriate bond for the differential duty.

Country of Origin and Duty Exemption:
The crucial issue in the case was determining the country of origin of the imported goods to ascertain the petitioner's entitlement to claim an exemption from payment of duty. The petitioner relied on a Notification providing for exemption from duty on imports from Indonesia. The court noted that goods imported by the same exporter for other importers had been cleared by the Revenue, indicating no irregularities. The court emphasized the need for provisional release of the goods, considering the documentation provided, and directed the Revenue to verify the authenticity of the country of origin within four weeks for necessary assessment.

Conclusion:
The High Court of Bombay, after considering the affidavits and documents presented by both parties, ordered the provisional release of the gold jewellery subject to the petitioner furnishing an appropriate bond. The court emphasized the importance of verifying the country of origin for duty exemption purposes and directed the Revenue to complete the verification process within a specified timeframe. The judgment was made in favor of the petitioner, and all contentions of the parties regarding the duty exemption were expressly kept open.