2007 (1) TMI 169 - AT - Customs

Appellants had imported CF Lamps from China without payment of anti-dumping duty - assessment-related provisions of the Customs Act were not applicable to anti-dumping duty. Hence the proposal raised by the Asst. Commissioner for finalization of provisional assessment is illegal duty not demandable without issue of SCN Comm. (A) is directed to pass speaking orders on merits in accordance with law and the principles of natural justice, without insisting on any pre-deposit

Summary

Issues:
1. Non-payment of anti-dumping duty on imported goods.
2. Finalization of provisional assessments under Section 18(2) of the Customs Act.
3. Dismissal of appeals for non-compliance with Section 129E of the Customs Act.
4. Validity of Notification No. 138/2002-Cus. giving retrospective effect to anti-dumping duty.
5. Applicability of assessment-related provisions of the Customs Act to anti-dumping duty.
6. Demand notice issuance within the normal period of limitation.
7. Directive for pre-deposit by learned Commissioner (Appeals) without proper consideration of financial hardships.

Analysis:

1. The appellants imported CF Lamps without choke from China without paying anti-dumping duty, which was leviable under specific notifications. The goods were provisionally cleared against bonds valid for 6 months, which were not renewed. No show-cause notice was issued by the department. The Assistant Commissioner passed orders finalizing assessments under Section 18(2) of the Customs Act, directing payment of anti-dumping duty. The appellate authority directed predeposit under Section 129E, dismissing appeals for non-compliance.

2. The Tribunal remanded the cases to the Commissioner (Appeals) for fresh speaking orders on stay applications and to deal with appeals in accordance with law and natural justice. The Commissioner (Appeals) subsequently directed pre-deposit, leading to dismissal of appeals for non-compliance, without proper consideration of financial hardships claimed by the appellants.

3. The main argument raised was the validity of Notification No. 138/2002-Cus., giving retrospective effect to anti-dumping duty, claimed to be repugnant to the Anti-dumping Rules. The Counsel cited previous decisions supporting the importer's stance, while the SDR relied on a different decision. The Tribunal refrained from delving into this issue, focusing on other valid arguments presented.

4. It was argued that the assessment-related provisions of the Customs Act were not applicable to anti-dumping duty during the import period. The proposal for finalization of assessments under Section 18 of the Customs Act was deemed illegal. No show-cause notice was issued, and demand notice should have been within the normal limitation period from bond expiry.

5. The Commissioner (Appeals) was criticized for undue haste in directing pre-deposit without proper appreciation of financial hardships and without conducting hearings on modification requests. The Tribunal set aside the orders, directing the Commissioner to pass speaking orders on merits without insisting on any pre-deposit, emphasizing compliance with law and natural justice.