S. Muralidhar, J.

W.P. (Civil) No. 10538/2015

1. Writ Petition (Civil) No. 10538 of 2015 by the Bullion and Jewellers Association (Regd.) [‘Association’] challenges the Circular dated 6th October 2015 issued by the Central Board of Excise and Customs (‘CBEC’), Department of Revenue, Ministry of Finance, Government of India, New Delhi stating inter alia that the gold jewellery imported by the members of the Petitioner Association from Indonesia do not satisfy the original criteria and should be denied the benefit of preferential custom duty. The impugned Circular directs the Assessing Authority to disregard certificates issued by the statutory authorities in Indonesia and the confirmation given by the government-owned companies in Indonesia.

2. While issuing notice in this writ petition, the Court by its order dated 6th November 2015 directed the Respondents to clear the consignments of gold imported from Indonesia provisionally in accordance with law and, in particular, the Customs (Provisional Duty Assessment) Regulations, 2011 (‘CPDA Regulations’). By a further order dated 14th December 2015, the Court directed that in respect of the demand-cum-show cause notices (SCNs) issued to the gold importers including M/s. J.B. Overseas [the Petitioner in W.P. (C) No. 936 of 2016], the dates for personal hearing would be fixed by the Custom authorities after the next date of hearing in the writ petition. The said interim order has been continued since then.

W.P. (Civil) No. 936/2016

3. Writ Petition (Civil) No. 936 of 2016 is by M/s. J.B. Overseas, a partnership firm, through its partner Mr. Naresh Sharma. It seeks to challenge the further Circular dated 20th January 2016 issued by the CBEC giving directions to the Assessing Officer (‘AO’) to follow the circular dated 6th October 2015 issued by the CBEC and to make provisional assessments in respect of the gold jewellery imported from Indonesia by demanding a bank guarantee (BG) for 100% of the duty differential.

4. Further, by the letter dated 22nd January 2016 issued by Respondent No. 2, the Assistant Commissioner of Customs, in the Office of the Principal Commissioner of Customs (Import), New Delhi, J B Overseas was asked to furnish a bank guarantee for 100% of the duty differential involved for the clearance of gold jewellery in terms of the directions given by the CBEC in its Circular dated 20th January 2016.

5. On 3rd February 2016 notice was issued in this writ petition and an interim order was passed restraining the Respondents from giving effect to the impugned Circular dated 20th January 2016 and the letter dated 22nd January 2016. The said interim order has continued since then.

Background facts

6. The background facts are that the members of the Association are engaged in the business of import/export and trading of assorted gold jewellery. Each of the members has been issued an Importer-Exporter Certificate Code issued under the Customs Act, 1962 (‘Act’). It is stated that during the period 2012-2015, the members of the Association regularly imported assorted gold jewellery from Indonesia classifiable under Tariff Heading 7113 19 10 of the Customs Tariff Act, 1975 (‘CT Act’) inter alia, from the Indonesian Supplier-PT Antam (Pesero) Tbk, Logam Mulia, Pulogadung, Jakarta (hereafter 'PT-Antam'), which is owned by the Government of Indonesia, by filing Bills of Entries (‘B/Es’). It is further stated that PT-Antam is engaged in mining, refining, and manufacturing jewellery and minted coins in Indonesia. PT-Antam is stated to have been accredited with the status of London Good Delivery Bars by the London Bullion Market Association (‘LBMA’) which is stated to be the highest accreditation authority for the world bullion market. The shares of PT-Antam are also traded on the Indonesian Stock Exchange as well as the Australian Stock Exchange.

7. The Union of India through Ministry of Commerce and Industry (Respondent No. 4) entered into an Agreement on Trade in Goods under the Fram