2018 (2) TMI 682 - AT - Customs

Speaking order - the Bill of Entry was assessed based on the declaration and check list submitted by the appellant themselves and also considered that there was no request from the appellant for reassessment or for issue of speaking order - Held that - keeping in mind the ratio of the judgment of the Hon ble Supreme Court in Priya Blue Industries 2004 (9) TMI 105 - SUPREME COURT OF INDIA , where it was held that Once an Order of Assessment is passed the duty would be payable as per that order. Unless that order of assessment has been reviewed under Section 28 and/or modified in an Appeal that Order stands, the matter is remanded to the lower appellate authority for considering the appeals filed by the appellant on merit - appeal allowed by way of remand.

Summary

Issues:
1. Proper classification of imported goods for customs duty assessment.
2. Applicability of appeal process based on previous judgments.
3. Requirement of a speaking order in customs assessment appeals.

Analysis:
1. The case involved the import of 'Fire Protection Equipment' where the appellant imported goods based on three invoices but only cleared the first consignment. The customs duty payable was calculated based on all three invoices, resulting in excess duty payment. The appellant sought modification of the assessment order, which was initially rejected. The Commissioner (Appeals) also dismissed the appeal stating that the appellant failed to raise grievances during assessment. However, considering the precedent set by the Supreme Court in Priya Blue Industries case, the Tribunal remanded the matter for a fresh assessment on merit, allowing the appellant a fair hearing.

2. During the hearing, the appellant's counsel argued that as per the Priya Blue Industries case, it was necessary to appeal to the Commissioner (Appeals) for assessment issues during the relevant period. Referring to previous orders by the same Commissioner (Appeals) and the Tribunal, it was highlighted that a speaking order is essential in cases where the assessment contradicts the importer's contentions. The Tribunal upheld the importance of a speaking order and directed the original authority to reevaluate the assessment based on the appellant's arguments.

3. The respondent, representing the customs authority, supported the impugned order, emphasizing that the assessment was based on the appellant's declaration and checklist without any request for reassessment or speaking order. However, after hearing both sides and examining the records, the Tribunal found merit in the appellant's argument regarding the inadvertent filing of multiple invoices leading to excess duty payment. The Tribunal set aside the impugned order and allowed the appeals by remanding the matter to the appellate authority for a fresh assessment, ensuring the appellant's right to a fair hearing in the process.

This detailed analysis of the judgment highlights the issues of proper classification for customs duty assessment, the significance of previous judgments in appeal processes, and the requirement of a speaking order in customs assessment appeals, providing a comprehensive understanding of the legal complexities involved in the case.