2010 (6) TMI 376 - AT - Customs

Appal to appelate Tribunal Appealable order Provisional assessement order on request of assessee It cannot be said that there was dispute between assessee and Dept. based on which appealable adjudication order was passed - conditions stipulated by the Commissioner for provisional assessment and release of the goods are liable to be interfered with if they are found to be against the mandate of law Provisional assessement conditions, direction of authority Bond for 100% assessable value is beyond Regulation 2 of Customs Regulations, 1963, stipulating it to be at 20% - It is improer exercise of discretion to ask for security

Summary

Issues:
- Appeal against Commissioner's decision on provisional assessment of imported goods.
- Validity of conditions stipulated by the Commissioner for provisional assessment and release of goods.

Analysis:
1. The appeal challenges the Commissioner's decision on provisional assessment of imported goods. The appellant sought to set aside the order of provisional assessment passed by the Commissioner. The Tribunal noted that the Commissioner's decision was not appealable as there was no dispute between the assessee and the department adjudicated upon by the Commissioner. The order for provisional assessment was made on the assessee's own request, and thus, the appeal to set it aside was not entertained.

2. The conditions set by the Commissioner for provisional assessment and release of goods were scrutinized by the Tribunal. One condition required the submission of a P.D. bond for 100% of the assessable value, which was deemed harsh and beyond the scope of relevant regulations. The Tribunal found this condition to be excessive and directed the Assistant Commissioner to limit the P.D. bond amount in accordance with the regulations. Another condition involved a cash deposit of 50% of the differential duty, which was upheld as valid. However, the requirement for a bank guarantee was to be reconsidered in light of the financial difficulties expressed by the assessee.

3. The Tribunal partially allowed the appeal by setting aside certain conditions in the Commissioner's order and directing the Assistant Commissioner to adhere to the regulations regarding the P.D. bond amount. The Assistant Commissioner was instructed to review the submissions made by the assessee regarding the bank guarantee and make a fresh decision after giving the party an opportunity to be heard. The decision was to be communicated to the assessee within 30 days for compliance.

4. The miscellaneous application seeking a direction for provisional release of goods was deemed unnecessary following the final disposition of the appeal. The Tribunal issued the pronouncement in court, concluding the judgment.