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TMI Blog2024 (4) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble Apex Court in the case of Commissioner of Central Excise, Shillong vs. Wood Craft Products Ltd.[ 1995 (3) TMI 93 - SUPREME COURT] and also in a later decision in the case of L.M.L Ltd. vs. Commissioner of Customs [ 2010 (9) TMI 12 - SUPREME COURT] has held that for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from HSN. Entry at CTH 7114 covers all articles of Gold. The word article has also not been defined under any of the Notes to Chapter 71. Again the dictionary meaning has to be relied upon. As per Oxford Dictionary article is a particular item or object and include household articles. Cambridge Dictionary also define article to mean as an object, a particular thing specially one i.e. one of several things of a similar type or a thing similarly placed. As per Merriam Webster dictionary article is a thing or a person of a particular and distinctive kind of class. Thus, it becomes clear that goods in question, (gold coins) being an object/ a thing of particular kind, hence are nothing but the articles. Keeping in view the entire discussion about Chapter Notes, explanatory notes, the General Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same to the facts of the present case despite that the facts are not identical. Thus both these questions (No. 2 3) also stands decided in favour of appellant holding that the gold coins imported by appellant are not the restricted goods and that the appellant is entitled for the exemption from payment of customs duty in terms of Notification No.66/2016-Cus dated 31.12.2016. - DR.RACHNA GUPTA, MEMBER (JUDICIAL) AND MRS. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL) Mr. M.S. Bhatia, Advocate for the appellant Mr. Nagendra Yadav, Authorized Representative for the Respondent ORDER Appellant filed 02 Bills of Entry (out of which 1 was assessed provisionally on execution of PD Bonds and 1 was assessed finally) for clearance of goods declared as gold coins (other than legal tenders) imported from South Korea. The goods were classified by the importer under Customs Tariff Head CTH 7114 1910 and benefit of Nil rate of Basic Customs Duty (BCD) was claimed under serial no. 526 of Notification no. 152/2009-Customs, dated 31.12.2009 as amended. 2. The officer concerned was of the opinion that the impugned goods i.e. gold coins, imported by the importer appear to be classifiable under CTH 7118 90 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive for Revenue. 5. Ld. Counsel for the appellant submitted that imported goods being Gold Coins i.e. an article of gold struck in the form of coin is rightly classified under CTH 7114 which covers articles of goldsmiths or silversmiths wares and parts thereof, of precious metal or of metal clad with precious metal and entry 7114 1910 covers Articles of gold. It is mentioned that the explanatory notes of heading 7118 includes coins which are either legal tender or which are no longer legal tender. This means the coins referred in the Chapter heading 7118 should either be legal tender or even if they are not legal tenders but they should have been legal tenders at one stage. But in the instant case the impugned goods have never been legal tender nor there is any such allegation in the entire SCN or the impugned order that the said coins are or were legal tenders. So, the impugned goods can not fall under CTH 7118. 6. The Appellant believes that the above heading has to be seen and understood in the light of the General Explanatory Notes given under General Rules for the Interpretation of the First Schedule of Import Tariff. That, the sub-heading 71181000 71189000 are meant for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to import gold coins (as well as medallions). Appellant not being any of such bank/ agency, benefit of exemption based on Certificate of Country of Origin (COO), as availed by the Appellant ,under notification No. 152/2009-Cus dated 31.12.2009 as amended by notification No. 66/2016-Cus dated 31.12.2016 (S.No. 526) is liable to be denied. Otherwise also COO mentions the CTH of the goods as 7114 whereas the actual CTH is 7118, therefore COO is not a valid document. Hence is wrongly used to claim benefit under the said notification. The goods/ gold coins imported by the appellant therefore became prohibited. Hence, the goods are rightly been confiscated under section 111(d) of the Customs Act, 1962. The penalty under section 112 of the Customs Act, 1962, has rightly been imposed. Also under section 28AA of the Customs Act, 1962, every person is liable for interest payment when there is demand of duty. Therefore there is no infirmity in the order under challenge. The appeal in hand is prayed to be dismissed. 10. After hearing the rival contentions of the parties and perusing the entire records, the moot questions to be adjudicated herein are observed as follows: (1) Whether the gol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Precious metal as per Note 4 (A) means silver, gold and platinum. 13. The goods in question apparently and admittedly are gold coins. As the terms suggest these are the articles crafted out of precious metal hence appears to be subject matter of CTH 7114. Simultaneously these articles specifically are coins and coins are precisely mentioned under CTH 7118. Thus it becomes the point of interpretation as to which CTH entry suits the impugned goods more. Hon ble Apex Court in the case of Commissioner of Central Excise, Shillong vs. Wood Craft Products Ltd. reported as [1995 (77) ELT 23 (SC)] and also in a later decision in the case of L.M.L Ltd. vs. Commissioner of Customs reported as [2010 (258) ELT 321 (SC)] has held that for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from HSN. The explanatory notes to HSN 7118 are as follows : 71.18 - Coin (+) 7118.10 - Coin (other than gold coin), not being legal tender 7118.90 - Other This heading applies to coins of any metal (including precious metals) of officially prescribed weight and design, issued under government control for use as legal tender. Consignment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at a particular time. Thus it is clear that for the coins to be legal tender, they should have the face value and should be allowed to be spent in the country of issue. Applying this definition to the coins in question, it is clear that the coins/goods imported by the appellant are not the legal tender. But admittedly these non legal tender coins are made of gold. These observations are sufficient for us to hold that the impugned goods (gold coins) do not fall under CTH 7118.90, being coins which are non legal tender. These goods do not even fall under CTH 7118.10 these being made of gold. 16. Entry at CTH 7114 covers all articles of Gold. The word article has also not been defined under any of the Notes to Chapter 71. Again the dictionary meaning has to be relied upon. As per Oxford Dictionary article is a particular item or object and include household articles. Cambridge Dictionary also define article to mean as an object, a particular thing specially one i.e. one of several things of a similar type or a thing similarly placed. As per Merriam Webster dictionary article is a thing or a person of a particular and distinctive kind of class. In the light of these definitions, it bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question have been imported from Korea. It has been brought to notice by learned Counsel for the appellant and acknowledged by the Department that Republic of India entered into a Comprehensive Economic Partnership Agreement with the Republic of Korea (Indo Korean CEPA), affirming their respective commitments to develop an open market economy in Asia. This agreement obliges both the parties not to maintain any non-tariff barriers and to follow the Harmonized System of Nomenclature as the basis for classification. The Reserve Bank of India on 18.02.2015 issued a circular No. 79 dated 18.2.2015 specifically removing the prohibition from import of gold coins and medallions which were prohibited prior to February 2015. Pursuant thereto, the Foreign Trade Policy 2015-20 was notified vide Notification No. 01/2015 to remain in force from 01.04.2015 to 31.03.2020. In terms of Para 2.01 of the Foreign Trade Policy, the imports of goods in India shall be free except regulated by way of 'prohibition', 'restriction' etc. as laid down in the Indian Trade Classification ( ITC (HS) ) of exports and imports. As far as goods imported and classified under CTH 7114 1910 are concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RBI can issue regulations under section 58 of the Reserve Bank of India Act, 1934 or section 47 of the foreign Exchange Management Act, 1999. Section 58 of RBI Act requires such Regulations to be issued only by way of Notification. Section 48 of FEMA requires Regulations issued under section 47 FEMA to prior be presented before the parliament. None of such regulations have been placed by the Department except a reference has been made to a letter issued by the RBI dated 13.09.2017 or the DGFT Memorandum. None of these documents can be called as Regulations issued by RBI under any of the discussed provisions. Otherwise also bar of RBI to issue directions under section 11 of Foreign Exchange Management Act extends only to authorized person with regard to making payment for foreign exchange or foreign security and RBI cannot regulate imports which are in the exclusive domain of DGFT. 22. The issue of prohibition has also been dealt with by this Tribunal in M/s. Abans Jewels (supra) case. We do not find any reason to differ from those findings which have been already followed in the case of M/s. Credence Cmmodities Exports vs. Principal Commissioner of Customs, ACC (Imports) in Custom ..... 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