24K Oval Pendants Qualify As Gold Jewellery, Eligible For Duty Exemption: CESTAT Hyderabad

The Hyderabad Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in a matter concerning import of oval shaped gold pendants, has favoured classification under Customs Tariff Heading (CTH) 7113 1910 as 'articles of jewellery' instead of CTH 7108 1300 as 'semi-manufactured gold' In a recent order dated November 28, 2025 the Bench comprising A.K. Jyotishi (Technical Member) and Mr. Angad Prasad (Judicial Member), examined the two competing tariff headings CTH 7108 (unwrought/semi-manufactured gold) and CTH 7113 (articles of jewellery). The CESTAT going by the General Rules of Interpretation held that oval shaped pendants with hook could be worn on the body as pendant and thus, qualified as “articles of jewellery”. Appellant imported a consignment of 250 numbers of gold pendants that are oval shaped of 99.99% purity, each weighing 20 grams, in all totalling to 5 kgs, valued at about Rs. 2.15 crores. It classified the import under CTH 7113 1910. As the goods imported were of Indonesian origin and covered under the ASEAN-India Foreign Trade Agreement (FTA) at Sl. No. 966 of Notification No. 46/2011-Cus dated June 01, 2011 which was further amended vide Notification No. 82/2018-Cus dated December 31, 2018, Appellant claimed exemption from payment of customs duty on the import. The imported goods were not released by the Customs Department. On June 14, 2021 when DGFT issued a clarification that Import under CTH 7113 was “free”, the Appellant moved to Telangana High Court whereby it was held that gold pendants were rightly classifiable under 7113 1910 and ordered release. On appeal, the Supreme Court issued interim directions, inter alia, allowing Department to investigate. Pursuant to the Supreme Court's interim order, a Show Cause Notice (SCN) was issued which sought to re-classify the imported consignment under CTH 7108, thereafter, an Order-In-Original was issued confirming the proposals under SCN. On validity of import, the CESTAT referring to DGFT Notification No. 26/2015-2020 dated December 18,2019 and subsequent clarificatory letter regarding import of gold and silver jewellery observed that at that time of import there were no restrictions on the goods imported under CTH 7113. As for reliance placed by the Customs Department on subsequent Notification No. 22/2015-2021 dated September 02, 2021 which inserted an Explanation in Notification No. 36/2019 dated December 12, 2019 stipulating 'Gold in any form', the CESTAT clarified that import effected on May 10, 2021 was prior to the said insertion. Thus, the CESTAT concluded that pendants were finished goods with hook for chain, inscriptions, and for adornment purpose. For classification, the CESTAT clarified that pendants were finished jewellery under CTH 7113 1910, supported by Chapter Note 9, HSN Explanatory Notes, Certificate of Origin certificate. It was also added that market research evidenced that 24K pendants sold by Kundan, Amazon, Anjali Gold were available with 99.99% purity gold. Case Detail: R.K. Digital Solutions vs. Commissioner of Central Tax, Hyderabad – GST Case No.: Customs Appeal No. 30206 of 2024 For Appellant: Advocates Kishore Kunal, Runjhun Pare For Respondent: Authorized Representative Mr. A. Rangadham Click Here To Read/Download Order

24K Oval Pendants Qualify As Gold Jewellery, Eligible For Duty Exemption: CESTAT Hyderabad

Parul Bose

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