2008 (8) TMI 180 - AT - Customs

Fresh examination of all aspects of assessment including classification of the goods must be undertaken while finalization of provisional assessments - direction issued by Commissioner (A) to the original authority to re-examine the issue of classification, is sustained - in the finalization of provisional assessments, the essential directions issued by the appellate authority be adhered to and any consequential refund of duty be granted to the assessee - appeals of the Revenue are dismissed

Summary

Issues:
1. Classification of imported goods for provisional assessment.
2. Appeal against the direction of the lower appellate authority regarding refund claim.

Analysis:
1. The case involved the classification of goods for provisional assessment. The importer had claimed a different classification for certain goods imported in 1995 and 1999. The goods were provisionally assessed pending SVB investigation, but the final assessment did not reclassify the goods as claimed by the importer. The appellate authority accepted the importer's contention that reclassification was necessary for finalizing the provisional assessments. The Tribunal agreed, stating that classification is an integral part of assessment, and the assessing authority should have corrected the classification during finalization. The Tribunal upheld the lower appellate authority's direction for reclassification and dismissed the Revenue's appeal.

2. The second issue revolved around the direction of the lower appellate authority regarding the admissibility of a refund claim. The Revenue contended that no refund could be granted without modifying the assessment order in appeal or under Section 28 of the Customs Act. The Tribunal found that since the assessments were provisional for both valuation and classification, the direction for considering a refund was valid. The Tribunal upheld the lower appellate authority's direction for adhering to essential directions in finalizing provisional assessments and granting any consequential refund of duty in accordance with the law. The appeals of the Revenue were dismissed, and the stay applications were disposed of accordingly.