In a significant case, the Madras High Court directed the customs authority to release the detained gold Imported without Customs Duty Payment after paying 100% duty.
M/s.Mudra Precious Metals Pvt. Ltd., the petitioner prayed to direct the respondents to release the goods, viz. Gold Dore Bars of Guinea imported, by extending the Benefit of Sl.No. 1 of Customs Notification No.96/2008-Customs, dated 13.08.2008 and also AIDC Notification No.011/2021-Cus., dated 01.02.2021 by accepting the Country of Origin Certificate Reference issued by the Government of Guinea under Duty-Free Tariff Preference Scheme for Least Developed Countries (Combined Declaration and Certificate).
The petitioner Company is business of refining the Gold out of Gold Dore after importing Gold from Gold producing GEA Countries as per the terms of the License issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry.
The petitioner has imported gold weighing 133,513.30 grams of Gold Dore Bars at USD 7,671,420.86 which were supplied by M/s.JSK Jewellery LLC, Dubai. The Ministry of Commerce viz., DGFT after perusing all the documents and after proper inspection and perusing the documents viz., NABL Certificate, NOC from Pollution Control Board, has issued Import Export License vide License No.0111008597 for import of Gold Dore Bars up to 95% purity for a quantity of 10.0 MTS., and from all GEA Countries.
The petitioner has put forth a suggestion that, since the petitioner is suffering towards heavy airport warehouse charges and a drastic fall in the market price of gold, the petitioner is ready to furnish a bank guarantee and also agreed to pay 100% duty under protest, provided the respondents, pending adjudication proceedings may order for the release of the detained goods forthwith.
On the other hand, the Senior Standing Counsel for the respondents submitted that since the petitioner imported the goods (viz., Gold) from some other Country and not from Guinea, the respondents have rightly detained the goods and hence, the petitioner is not entitled to seek exemption.
Justice Krishnan Ramasamy directed the Authority concerned to consider the petitioner’s request and release the goods subject to payment of 100% duty by the petitioner within a week from the date of payment of 100% duty made by the petitioner by law.
The petitioner, after making the payment of 100% duty, is at liberty to make an appropriate application seeking the release of the goods, which shall be considered by the Authority concerned.
Further, the respondents are also directed to adjudicate the matter relating to the issue of exemption of duty for import of gold by the petitioner by law after affording ample opportunities to the petitioner, as expeditiously as possible, preferably, within three months.
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