Noor Jewel Impex Vs Commissioner of Customs (Airport & A.C.C.) (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, allowed a batch of appeals arising from an Order-in-Original dated 01.07.2024 concerning alleged diversion of duty-free imported gold under the Advance Authorisation Scheme. The proceedings related to imports made by M/s. Noor Jewel Impex (NJI), which imported gold duty-free under Advance Authorisation No. 0410166578 dated 03.03.2020 for manufacture and export of gold jewellery. Since NJI did not possess its own manufacturing facility, it engaged supporting manufacturers and job workers for manufacturing activities.
Following searches conducted by the Directorate of Revenue Intelligence (DRI) on 08.07.2021, the Department seized 2,68,416.448 grams of primary gold and 4,083.900 grams of gold jewellery. The Department alleged violation of the Actual User condition under the Advance Authorisation Scheme by diversion of imported gold to job workers who were not endorsed as supporting manufacturers, diversion of gold to unauthorised entities, discrepancies in stock reconciliation, attempted export of excess gold jewellery, and procurement of 1,796.740 grams of gold from unauthorised sources. A Show Cause Notice proposed confiscation of the seized gold and jewellery, recovery of customs duty with interest, and penalties under Sections 112(a)(i) and 114(iii) of the Customs Act, 1962. The adjudicating authority ordered confiscation of 2,66,619.708 grams of gold with redemption fine, absolute confiscation of 1,796.740 grams of gold, confiscation of 4,083.900 grams of jewellery with redemption fine, confirmed duty and interest on the confiscated quantity, imposed penalties on the appellants, and directed enforcement of bonds and bank guarantees.
