2004 (1) TMI 461 - AT - Central Excise

Summary

Issues: Jurisdiction of the Commissioner of Central Excise to reopen assessment made by customs authority at the importing port; Waiver of pre-deposit of duty and penalty.

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the main issue revolved around the jurisdiction of the Commissioner of Central Excise, Thane-I, to reopen the assessment made by the customs authority at the importing port. The appeals were against an order confirming a customs duty demand and confiscation of imported goods by the Commissioner. The imported goods, declared as scrap, were cleared by Nhava Sheva customs after examination and assessment. However, the Central Excise Commissioner, upon re-examination, concluded that the goods were misdeclared and demanded duty at a higher rate, imposing penalties on the appellants.

The applicants sought waiver of pre-deposit of duty and penalty, while the main appellants contested the order on merit, arguing that the adjudicating Commissioner lacked jurisdiction to reopen the customs authority's assessment. After hearing both sides, the Tribunal accepted the objection raised by the appellants' counsel, holding that the Commissioner's order could not be sustained on the ground of jurisdiction.

Consequently, the Tribunal allowed the applications and appeals, setting aside the impugned order. It was directed that the imported goods be mutilated under supervision before utilization in the appellant's factory. The judgment concluded by stating that all appeals were allowed in accordance with the orders issued by the Tribunal.