$~188 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 9861/2025 M/S M.D. OVERSEAS PRIVATE LIMITED .....Petitioner Through: Mr.PradeepJain&Mr.SambhavJain, Advs. versus JOINT COMMISSIONER OF CUSTOMS & ANR.

.....Respondents Through: Mr. R.Ramachandran, SSC, CBIC with Mr. Prateek Dhir, Adv.

(9868211477)

CORAM:

JUSTICE PRATHIBA M. SINGH JUSTICE SHAIL JAIN

O R D E R

% 18.12.2025

1. This hearing has been done through hybrid mode.

2. This is a petition under Article 226 of the Constitution of India inter alia challenging the impugned Order-in-Original dated 26^th June, 2025 (hereinafter, ‘impugned OIO’) .

3. ThebackgroundofthecaseisthatthePetitionerisarefinerofimported gold dore bars and imports the same from various international jurisdictions with valid import authorisation. The Petitioner had imported the following sevengoldbarsfromBoliviawiththeassessablevalueinthefollowingterms:

4. The challenge before the Petitioner today is that the supplier in the country of origin is not accepting the gold consignment back and thus, the

Petitioner is willing to export the same to a purchaser in Dubai.

5. Ld.CounselforthePetitionerhasrelieduponthenotificationdated30th June, 2017 bearing Notification No.50/2017- Customs to argue that there is a special rate of customs duty in respect of goods that are directly shipped from the country in which they are produced and each bar has a weight of 5 kgs or above.

6. In terms of Condition Nos. 9 & 40 of Notification No.50/2017– Customs, dated 30th June, 2017, the standard rate of duty imposed is 5% and the same has been clarified as under:

“ConditionNo.9and40ofNotificationNo-50/2017-

Cus dated 30.06.2017

9.Iftheimporterfollowsthe proceduresetout in the Customs (Import of Goods at Concessional Rate of Duty or Specified End Use) Rules, 2022.

40. If,-

(a) the goods are directly shipped from the country in which they were Produced and each bar has a weight of 5kg or above;

(b) the goods are imported in accordance with the packing list issued by the Mining company by whom they were produced;

(c)the importer produces before the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, an assay certificate issued by the mining company or the laboratory attached to it, giving detailed precious metal content in the dore bar;

(d)thegolddorebarsareimportedbytheactualuser for the purpose of refining and manufacture of standard gold bar of purity 99.5% and above; and (e) the silver dore bars are imported by the actual user for the purpose of refining and manufacture of silver bars of purity 99.9% and above.

”

7. In terms of the above Notification, therefore, if the goods are shipped from the country from where they were produced and the gold bar has a weight of 5kg and above, the concessional rate of duty would be permitted to be availed of by the Petitioner.

8. As can be seen from the table above, except for the last gold bar,all the other gold bars are above 5kg and in the case of the last gold bar, it is short of 5kg by about 800g. The said gold bar was not permitted to be cleared and the Petitioner then submitted a request for permitting release of the seventh gold bar also, which had been shipped inadvertently to the Petitioner.

9. The Petitioner has not been permitted and the impugned OIO was passed on 26^th June, 2025, directing the Petitioner to export the gold bar back to the country of its origin. The relevant portion of the said order reads:

“i) I order for confiscation of one gold dore weighing 4.228100 kg having assessable value of Rs. 38324714/- (Rs. Three Crore Eighty Three Lakh Twenty Four Thousand Seven Hundred Fourteen only) imported vide Bill of Entry No. 2800363 dated 21.06.2025 under section 111(d) of the Customs Act,1962 for the reasons mentioned above. However, considering the importer's request for re-export, based on bonafide mistake as discussed above, and the fact that they had informed department regarding offending nature of the goods., I allow importer an option to re-exp