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Issues: Appeal against re-opening of assessments for reclassification of goods under different headings seeking higher duty.
The appellants contended that the goods had been finally assessed under CH 8432.80 covering machines, specifically 'Power Tillers', falling under this category. Revenue accepted the assessments without filing an appeal against them. Therefore, re-opening the assessments for reclassification under headings 8701.10 and 8708.40/8708.93 for higher duty is not in accordance with the law, citing judgments of the Apex Court in cases such as Priya Blue Industries Ltd. v. CC (Preventive) and CCE, Kanpur v. Flock (India) Pvt. Ltd. The appellants argued that the Board's Circular for classifying the item under CTH 8701.10 and Tariff Advice 06/2001, issued after goods clearance, cannot have retrospective effect as per the Apex Court's ruling in H.M. Bags Manufacturer v. CCE. They urged that the appeal should be allowed on these grounds. The learned SDR reiterated the findings of the authorities below. Upon careful consideration, it was observed that there was no dispute regarding the final assessment of the Bill of Entry, which was not challenged by Revenue for a different classification heading. Therefore, as per the Apex Court judgments in Priya Blue Industries and Flock India Ltd., reopening assessments without challenging the finalization of the Bill of Entry is not legally sustainable. Additionally, the assessments were reopened based on a Board's Circular, which, as per the Apex Court's ruling in H.M. Bags Manufacturer, can only have prospective effect. The appellants succeeded on both grounds, leading to the allowance of the appeal with any consequential relief. *(Operative portion of this Order was pronounced in open Court on conclusion of hearing)*
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