Tushar Jewellers Vs Commissioner of Customs (CESTAT Chandigarh)
The appeal challenged the order dated 08.05.2026 of the Commissioner (Appeals), which upheld the lower authority’s order dated 15.03.2026 rejecting the appellant’s request for provisional release of imported goods. The appellant had imported consignments of 92.5% silver jewellery studded with synthetic stones from Thailand under Bills of Entry Nos. 6042250 and 6042246, both dated 02.12.2025. The Department alleged that the goods were correctly classifiable under Customs Tariff Item (CTI) 71131149 instead of the declared CTI 71131145 and were therefore restricted under DGFT Notification No. 34/2025-26 dated 24.09.2025. Goods weighing 12,22,860 grams and valued at ₹25,16,49,066 were seized on 07.01.2026, and the request for provisional release was rejected by both the original and appellate authorities.
The appellant contended that the dispute was only one of classification and had been incorrectly treated as involving prohibited or restricted goods. It submitted that there was no allegation of concealment, misdeclaration of quantity or value, substitution, forged documents or hazardous goods. The appellant asserted that the goods were declared as silver jewellery with synthetic stones and that laboratory testing confirmed the presence of synthetic cubic zirconia and synthetic ruby. It further submitted that the test reports had not been supplied before rejection of the provisional release application, that Chapter Note 9 to Chapter 71 expressly included jewellery set with synthetic or reconstructed precious or semi-precious stones, that restricted goods were not automatically absolutely prohibited, and that provisional release should not be denied merely on the basis of an alleged policy violation. The appellant also relied on the provisional release granted in the case of another importer and expressed willingness to furnish bond or security. It further submitted that denial of release had resulted in blockage of funds and mounting demurrage, detention and storage charges.
