2015 (1) TMI 1326 - HC - Customs

Speaking order - respondent No.2 was required to pass a speaking order on the re-assessment of assessable value within 15 days from the date of reassessment of the bill of entries as required u/s 17(5) of the Act - Held that - the competent officer to pass a speaking order on the re-assessment of the assessable value within a period of four weeks - petition allowed - decided in favor of petitioner.

Summary

Issues Involved:
1. Interpretation of Section 17 of the Custom Act, 1962 regarding assessment of value for imported goods.
2. Validity of oral order for enhanced duty without a formal reassessment order.
3. Requirement of passing a speaking order under Section 17(5) of the Act.
4. Petition for refund and direction for reassessment order.

Analysis:
1. The petitioners, who import Aluminum waste and scrap, argued that the transaction value declared in the invoice bills should be the basis for assessment under Section 17 of the Custom Act, 1962. They claimed that the proper officer should have passed an assessment/re-assessment order on the duty payable by them if satisfied with their self-assessment. The petitioners contended that an oral order for enhanced duty was issued by the proper officer, leading them to deposit the additional duty under protest. They insisted that a speaking order under Section 17(5) should have been passed within 15 days from the reassessment of the bill of entries, as they did not confirm the enhancement of assessable value.

2. The department's standing counsel acknowledged the need for a re-assessment order under Section 17(5) and agreed that the court should direct the proper officer to pass such an order. The court, based on the uncontested facts presented, disposed of the writ petition by instructing the competent officer to issue a speaking order on the reassessment of the assessable value within four weeks from the date of receiving a certified copy of the order, in compliance with Section 17(5) of the Custom Act, 1962.

3. The judgment focused on the procedural requirements outlined in Section 17 of the Act, emphasizing the necessity of a formal reassessment order and a speaking order to ensure transparency and compliance with the law. The court's decision to direct the competent officer to pass a speaking order within a specified timeframe aimed to uphold the statutory provisions and protect the petitioner's rights in the assessment process.

4. By addressing the issues raised by the petitioners regarding the assessment of duty on imported goods and the lack of a formal reassessment order, the court provided clarity on the legal requirements under the Custom Act, 1962. The judgment not only granted relief to the petitioners by directing the proper officer to issue a speaking order but also underscored the importance of procedural fairness and adherence to statutory provisions in customs assessments.