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2017 (11) TMI 259 - HC - CustomsMaintainability of petition - efficacious remedy of an appeal under Section 128 of the Customs Act - Principles of Natural Justice - ex-parte assessment order - The contention of the Petitioner is that the act of unilateral loading on invoices value is contrary to the law and in particular, the Circular dated 8 April 2011. It is contended that the assessment of duty made payable by the Petitioner is in gross breach of the principles of natural justice - Held that - the decision in the case of Zuari Agro Chemicals Limited Versus Union of India And Others 2014 (2) TMI 552 - BOMBAY HIGH COURT , referred, where it was held that the final assessment of the goods which have been provisionally assessed has to be in terms of Section 17 of the Act. This is so as Section 18(2) of the Act itself does not provide for finalization of assessment but merely states the action to be taken by the Assessing Officer consequent to the finalization of provisionally assessed bill of entry under Section 17 of the Act. The final assessment made on the Bills of Entry (copies of which are annexed at Exh.A to the Petition) and in particular, Bills of Entry specified in paragraph 2 of the Petition set aside - A fresh order of finalization of the assessment of the Bills of Entry be made by the appropriate officer of the Department of Customs after following the principles of natural justice in the light of the directions issued in paragraph 16 of the decision of this Court in the case of Zuari Agro Chemicals Ltd. is directed - appeal allowed in part.
Issues Involved:
Challenge to ex parte assessment orders based on statutory appeal availability under Section 128 of the Customs Act, 1962. Detailed Analysis: Issue 1: Statutory Appeal Availability The petitioner challenged ex parte assessment orders, arguing that unilateral loading on invoices value breached the law and principles of natural justice. The petitioner contended that a speaking order should be passed, citing a previous Division Bench decision. The respondents raised a preliminary objection on the maintainability of the Writ Petition, asserting that the petitioner had an efficacious remedy of appeal under Section 128 of the Customs Act. Analysis: The Division Bench in the case of Zuari Agro Chemicals Ltd. addressed similar issues. The court noted that an appeal under Section 128 must be from an order with reasons, as mandated by Section 17(5) of the Act. Without a speaking order, challenging the assessment would be futile, rendering the appeal process ineffective. The court emphasized the importance of reasons in administrative decisions, citing legal precedents and principles of natural justice. Issue 2: Principles of Natural Justice The Division Bench framed two questions regarding the necessity of following natural justice principles and issuing a speaking order justifying any variation in assessment. The court emphasized that any quasi-judicial decision subject to appeal must provide reasons. The court set aside the final assessments, directing a fresh assessment following natural justice principles and issuing a reasoned order within 15 days. The court concluded that speaking orders are essential when assessments differ from the importer's claims. Analysis: The court's directions emphasized the significance of natural justice principles and speaking orders in final assessments. The judgment highlighted the need for reasons in administrative decisions subject to appeal, ensuring fairness and effective recourse for aggrieved parties. The ruling underscored the importance of transparency and accountability in customs assessments, aligning with established legal principles and precedents. In conclusion, the judgment by the Bombay High Court in this case reaffirmed the necessity of following natural justice principles and issuing speaking orders in customs assessments. The decision provided clarity on the appeal process under Section 128 of the Customs Act, emphasizing the critical role of reasons in administrative decisions subject to challenge. The detailed analysis of the issues involved showcased the court's commitment to upholding fairness, transparency, and accountability in customs procedures.
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