Calcutta High Court (Appellete Side)
M/S. N.D. Diamond & Anr vs Commissioner Of Customs (Airport) & Anr on 4 August, 2015
Author: Biswanath Somadder
Bench: Biswanath Somadder
1
09
04.08.2015
pg.
WP 17052 (W) of 2015
M/s. N.D. Diamond & Anr.
Vs.
Commissioner of Customs (Airport) & Anr.
Mr. Arijit Chakrabarti
Mr. Debaditya Banerjee
... For the petitioners
Mr. S.B. Saraf
Mr. K.K. Maiti
... For the respondents
Let the report in the form of an affidavit filed in Court today on behalf of the Commissioner of Customs (Airport and Administration) be taken on record.
The only issue which arises for consideration in the facts and circumstances of the instant case is whether the competent authority to verify the original documents submitted by the importer in respect of the imported consignment of gold jewellery verified the original documents before provisionally assessing the subject goods.
It appears from the report in the form of an affidavit that the subject consignment of gold jewellery was being cleared under India ASEAN Preferential Trade Agreements with exemption of the basic customs duty on the basis of Certificate of Origin issued by the country of export. Reliance has been placed by the Customs authorities in respect of a Standing Order dated 22nd February, 2012, in this regard. However, it has 2 also been stated by the Customs authorities that the Directorate of Revenue Intelligence issued an 'Alert Circular' on 19th June, 2015, which is being followed by them in the matter of verification of Country of Origin certificates for import of gold jewellery under Free Trade Agreements/ Preferential Trade Agreements.
A question, therefore, arises is whether the Directorate of Revenue Intelligence 'Alert Circular' dated 19th June, 2015, which is sought to be relied upon by the customs authorities, has any relevance or not in the given facts of the instant case.
Even a bare perusal of the said 'Alert Circular' dated 19th June, 2015, reveals that in terms of paragraph 5 thereof, the Customs authority is required to make a request to the importer for information or documents relating to the origin of imported goods with its domestic laws and regulations before requesting retroactive check. The said 'Alert Circular' also states that all Customs formations may closely scrutinise all imports of gold jewellery under claim for preferential treatment and request the importer for relevant information with regard to compliance with the Rules of Origin. Wherever evidence comes forth to indicate violation of the Rules of Origin, cases may be finalised by passing suitable speaking orders.
It appears that in the instant case reliance on the 'Alert Circular' dated 19th June, 2015, by the Customs authorities is wholly misplaced. The reason is, the Certificate of Origin should be verified by the STA, subject to the satisfaction of the concerned AC/DC and only in case of any doubt of the Certificate of Origin, it may be assessed provisionally.
3In the facts of the instant case, there is no such doubt with regard to the genuineness of the Certificate of Origin expressed, either by the AC or DC of the Customs authorities. Instead, the Customs authorities have simply shifted their responsibility to the Directorate of Revenue Intelligence, which is certainly not the true scope, purport and effect of the 'Alert Circular' dated 19th June, 2015, issued by the Directorate of Revenue Intelligence.
In such circumstances, the Customs authorities are directed to take immediate steps to finally assess the imported consignment of gold jewellery in accordance with law, as expeditiously as possible, preferably within a period of a fortnight, but not later than three weeks from the date of communication of a photostat certified copy of this order.
The writ petition stands disposed of accordingly.
Urgent photostat certified copy of this order, if applied for, be given to the learned advocates for the parties.
(Biswanath Somadder, J.)