2017 (7) TMI 1405 - HC - Customs

Seeking a direction to the respondent to amend and modify the assessments made in respect of certain Bills of Entry - applicability of N/N.12/2012- Customs dated 17.3.2012 by exercising powers under Section 149 of the Customs Act, 1962 - HELD THAT - In terms of Section 149 of the said Act, the proper officer may, in his discretion, authorize any document, after it has been presented in the Customs House, to be amended. The Proviso states that no amendment of Bill of Entry or Shipping Bill shall be authorized to be amended after the imported goods were cleared for home consumption or deposited in a warehouse except on the basis of documentary evidence, which was in existence at the time the goods were cleared, deposited or exported, as the case may be. Thus, the only embargo is that a person seeking relief under Section 149 of the said Act cannot rely upon a documentary evidence, which came into existence after the goods were cleared, deposited or exported, as the case may be. In the case on hand, the petitioners place reliance on a Notification issued by the Department in Notification 12/2012 dated 17.3.2012, which was in existence much prior to the date of import. Considering the fact that the applications given by the petitioners are still pending, the writ petitions are disposed of with a direction to the respondent to consider the applications of the respective petitioners dated 21.10.2016 on merits and pass a speaking order thereon in accordance with law - Petition disposed off.

Summary

Issues:
Prayer for direction to amend and modify assessments made in respect of Bills of Entry by applying Notification No.12/2012-Customs under Section 149 of the Customs Act, 1962.

Analysis:
The petitioners, engaged in importing and trading, imported goods valued at specific amounts through Chennai Port. The Bills of Entry were assessed with certain duties, which the petitioners paid and cleared the goods. Later, they discovered that the basic customs duty applicable was lower than assessed, prompting them to seek amendment under Section 149 of the Customs Act, 1962.

The petitioners argued that they were not aware of the correct duty rate initially and only realized the error upon verification. They submitted representations for amendment based on Notification 12/2012 dated 17.3.2012, which specified a lower duty rate than what was initially assessed. The provision under Section 149 allows for amendment of documents presented in the Customs House, with the caveat that post-clearance amendments require documentary evidence existing at the time of clearance.

The petitioners relied on a pre-existing Notification from the Department and a decision from the High Court of Bombay to support their claim that paying duty under a mistake of law should not lead to being assessed with a higher duty. The court acknowledged the pending applications from the petitioners and directed the respondent to consider them on merit, pass a speaking order, and provide a personal hearing opportunity within four weeks from the date of the order, emphasizing compliance with the law and no cost imposition.