2009 (6) TMI 824 - AT - Customs

Summary

Issues involved:
The issues involved in the judgment are related to the assessment of duty savings on imported goods under various customs notifications, the applicability of Notification No. 6/02-C.E., dated 1-3-2002, and the authority to re-assess Bills of Entry under Section 149 of the Customs Act, 1962.

Assessment of duty savings:
The case involved the import of computer controlled HTHP yarn dyeing machines by Madura Coats Pvt. Ltd. (MCPL) under an EPCG license issued u/s Notification No. 97/04-Cus. The goods were initially assessed with duty savings, but MCPL later realized that the CVD leviable on the imported goods was 'Nil' under a different notification. The dispute arose when MCPL sought to have the duty savings debited in the EPCG license reduced to nil. The Assistant Commissioner and Commissioner (Appeals) declined the request, citing finality of the assessment under Section 47 of the Customs Act, 1962.

Re-assessment under Section 149:
The Tribunal, in a previous order, directed the Assistant Commissioner/Deputy Commissioner of Customs to consider the re-assessment of the Bill of Entry on merits, similar to a previous case involving PPN Power Generating Co. P. Ltd. The Tribunal emphasized that the assessment by the appraising officer could be reviewed by the Assistant Commissioner/Deputy Commissioner of Customs when the assessee's claim for exemption was considered. The Tribunal allowed MCPL's appeal, highlighting the need for re-assessment to free the appellants of the export obligation in a revenue-neutral situation.

Applicability of Notification No. 6/02-C.E.:
MCPL appealed to the Tribunal, arguing that the lower authorities failed to follow the Tribunal's binding directions in a previous order. The Tribunal noted that its previous order had not been challenged and had attained finality. The Tribunal found that the impugned order was contrary to its directions in the remand order, and therefore set it aside, allowing MCPL's appeal. The Tribunal directed MCPL to file an amended Bill of Entry seeking assessment of the imported goods under Notification No. 6/2002-C.E., dated 1-3-2002, in accordance with Section 149 of the Act.

In conclusion, the Tribunal set aside the impugned order and directed MCPL to file an amended Bill of Entry for assessment under Notification No. 6/2002-C.E., dated 1-3-2002, in compliance with Section 149 of the Customs Act, 1962, allowing the benefit of assessment sought by the appellants.