2015 (9) TMI 1071 - HC - Customs

Classification of Goods Re-assessment Order Petitioner claims that goods imported were classified as quilt covers whereas Department had taken position that they were in nature of polyester fabric Held that - respondents do not disagree that if goods were classifiable as polyester fabric they would have to pass re-assessment order under Section 17(5) of Customs Act, 1962 Therefore respondent-1 directed to pass re-assessment order in terms of Customs Act, 1962 Petition disposed of Decided in favour of Petitioner.

Summary

Issues: Classification of imported goods as 'quilt covers' or 'polyester fabric', validity of counter affidavits filed beyond prescribed time, direction for re-assessment order under Section 17(5) of the Customs Act, 1962.

In this case, the primary issue revolves around the classification of the imported goods as 'quilt covers' by the petitioner, while the Customs Department argues they are 'polyester fabric'. The petitioner referred to a letter from the Commissioner of Customs supporting their classification. However, the respondents claim that the petitioner obtained an internal document illegally and failed to present contradictory evidence. The respondents acknowledge that if the goods are indeed classified as polyester fabric, a re-assessment order under Section 17(5) of the Customs Act, 1962, would be necessary. The petitioner seeks a direction from the Court for the possibility to challenge any unfavorable re-assessment order.

Regarding the counter affidavits filed by the respondents, it was noted that they were submitted beyond the stipulated time frame, rendering them not on record. Despite this, the Court proceeded with the case. The judgment directs respondent No. 1 to conduct a re-assessment under Section 17(5) of the Customs Act, 1962, based on the classification issue raised by the petitioner. Consequently, the writ petition is disposed of with the mentioned directive for re-assessment, allowing the petitioner to pursue further legal action if the re-assessment order is unfavorable.

The judgment underscores the importance of proper classification of imported goods and the necessity for adherence to legal procedures, such as timely filing of affidavits. It highlights the role of the Court in ensuring fair assessment and providing avenues for redressal in case of disputes arising from customs classification issues. The decision emphasizes the significance of following statutory provisions, like Section 17(5) of the Customs Act, 1962, to maintain transparency and integrity in customs assessments.