RAM ABHOSHAN Vs. PEC LTD

JUDGEMENT

(1.) Cm No. 43148/2018 (for exemption) Exemption allowed subject to all just exceptions.

(2.) The appellant is a proprietorship concern engaged in trading of gold and bullion. The respondent is one of the eight agencies, as notified by the Director General of Foreign Trade for import of gold in India. A Tender dated May 12, 2014 was issued by the respondent with respect to "Net Trading Margin of Sale of Gold by PEC to be imported in 8 th lot of 337 kg. under 20:80 scheme of the RBI". It is a matter of record that the Reserve Bank of India (RBI) vide its circular dated August 14, 2013 had clarified its instructions with respect to import of gold by nominated banks / agencies / entities whereunder the Nominated Banks / Nominated Agencies and other Entities were to make available gold for domestic use only to the entities engaged in jewellery business / bullion dealers and to banks authorized to administer the Gold Deposit Scheme (GDS) against full upfront payment on certain conditions. Under 20:80 Scheme of RBI, 20% of the quantity of imported gold was earmarked for export purpose only and the remaining 80% quantity of imported gold was meant for sale in domestic market. It is noted from the impugned order that the respondent had floated the tender only for 80% quantity of gold meant for domestic use.

(3.) The appellant submitted its bid for import of 200 kg of gold, offering a Net Trading Margin of 6.25%. Pursuant thereto, a contract came into existence between the parties.