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TMI Blog2022 (7) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... ans Jewels does indicate that the factual dispute is similar. The stand of Adjudicating Authority that as the subject goods are classifiable under CTI 7118 90 00, it is clear that the import of gold coins are subject to RBI Guidelines, cannot be sustained - Appeal allowed. - CUSTOMS APPEAL NO. 50220 OF 2021, 50465 OF 2021, 50466 OF 2021, 50467 OF 2021, 50472 OF 2021, 50473 OF 2021, 50476 OF 2021, 50638 OF 2021, 50735 OF 2021 - FINAL ORDER NO. 50573-50581/2022 - Dated:- 5-7-2022 - HON BLE MR. JUSTICE DILIP GUPTA, PRESIDENT AND HON BLE MR. P. V. SUBBA RAO, MEMBER (TECHNICAL) Shri Pradeep Jain, Advocate for the Appellants Shri Sunil Kumar and Shri Nagender Yadav, Authorized Representatives of the Department ORDER JUSTICE DILIP GUPTA: Customs Appeal No. 50220 of 2021 has been filed by M/s. N C Jewellers to assail the order dated 07.09.2020 passed by the Principal Commissioner of Customs, ACC (Imports), the Principal Commissioner rejecting the classification of the goods claimed by the appellant to be under Customs Tariff Item, CTI 7114 19 10 and classifying them under CTI 7118 90 00 of the Customs Tariff Act, 1975, the Tariff Act. The Principal Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Demand Details (A) Grand Total 2,65,12,832.00 28,12,746.00 (B) Redemption Fine 28,00,000.00 (C) Penalty Imposed 02,50,000.00 Customs Appeal No. 50466 of 2021 SN. BoE No. and Date Value (Rs.) Total Differential Duty (Rs.) Provisionally Assessed 1. 2549419 dated 21.07.2017 2,65,12,832 28,12,746 2. 2623234 dated 27.07.2017 4,06,76,219 43,15,340 3. 2623646 dated 27.07.2017 5,68,00,313 60,25,945 4. 2688793 dated 02.08.2017 5,95,69,127 63,19,689 5. 2833805 dated 13.08.2017 8,06,24,015 85,53,402 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Redemption Fine 6,60,00,000.00 (C) Penalty Imposed 85,00,000.00 Customs Appeal No. 50472 of 2021 SN. BoE No. and Date Value (Rs.) Total Differential Duty (Rs.) Provisionally Assessed 1. 2549417 dated 21.07.2017 2,65,12,832.00 28,12,746.00 2. 2639566 dated 28.07.2017 8,08,94,046.00 85,82,049.00 3. 2651823 dated 29.07.2017 6,73,70,317.00 71,47,317.00 4. 2701241 dated 02.08.2017 5,53,27,626.00 58,69,708.00 5. 2701242 dated 02.08.2017 5,37,51,102.00 57,02,454.00 Finally Assessed 6. 2714754 dated 03.08.2017 6,87,73,887.00 72,96,222.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. 2853535 dated 15.08.2017 8,30,01,239.00 88,05,601.00 Finally Assessed 7. 2830996 dated 12.08.2017 16,78,89,039.00 1,78,11,348.00 Total Demand Details (A) Grand Total 65,00,65,685.00 6,89,65,467.00 (B) Redemption Fine NA (C) Penalty Imposed 6,80,000.00 Customs Appeal No. 50638 of 2021 SN. BoE No. and Date Value (Rs.) Total Differential Duty (Rs.) Provisionally Assessed 1. 2705949 dated 03.08.2017 13,79,06,306.00 1,46,30,480.00 2. 2717226 dated 03.08.2017 13,70,99,657.00 1,45,44,903.00 3. 2803092 dated 10.08. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L Basic Customs Duty, BCD to all goods falling under Customs Tariff Headings, CTH 71021 to 711890 on production of Country of Origin Certificate. The aforesaid customs notification was issued in terms of the India-South Korea Comprehensive Economic Partnership Agreement. 6. However, show cause notices were issued to the appellants seeking to re-classify the imported goods and deny the exemption claimed by the appellant 7. The appellants filed detail replies to the show cause notices, but the demands were confirmed by the Principal Commissioner 8. The gist of the findings recorded by the Principal Commissioner are as follows: (i) The goods, being coins, are covered under CTH 7118 and entry in CTH 7114 is for residuary items; (ii) CTI 7118 10 00 covers coin (other than gold coin not being legal tender), while CTI 7118 90 00 covers coin other than coin of CTI 7118 10 00. Thus, CTI 7118 90 00 would cover gold coin, not being legal tender; (iii) HSN Explanatory Notes that define the scope and ambit of CTH 7118 do not explicitly exclude gold coins, not being legal tender; (iv) The Delhi High Court in Khandwala Enterprise Pvt. Ltd. vs. Union of India, 2020 (371) E.L. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the appellant is justified in classifying the goods under CTH 7114. CTH 7114 would cover articles of gold and the goods imported by the appellant are also articles of gold which are round in shape. Heading 71.14 of HSN provides that these goods are larger than articles of jewellery of heading 71.13 and they include articles for domestic or similar use like medals and medallions (other than those for personal adornment). 30. According to the appellant the imported articles of gold are round in shape and have images of gods, saints, temples or historical sites. These articles are struck in the form of a coin and are not or were not intended to be legal tender and infact are more akin to medals or medallions and were loosely described as gold coins. It is not in dispute that the appellant had described the goods in the Bills of Entry as gold coins which are not legal tender. These have not been struck by any National Issuing Authority and are not legal tender. The Explanatory Notes to heading 71.14 of HSN clarify the tariff text other articles for domestic or similar use as including medals and medallions. Medals and medallions referred to in the Explanatory Notes share si ..... 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