2018 (3) TMI 776 - AT - Customs

Speaking order on re-assessment - whether the Commissioner (Appeals) directing the Assistant Commissioner/ assessing authority to pass a speaking order for loading of value of imported goods and to comply with the provisions of Section 17(6) is correct or otherwise? - Held that - since at the stage of assessing authority the loading/re-assessment was done arbitrarily and no speaking order was passed, there is a clear violation of the process of re-assessment as provided under Section 17(6) - The Commissioner (Appeals) in absence of any speaking order cannot decide the matter on either side, therefore, he was right in directing the assessing authority to pass a fresh order on the assessment after complying the provision of Section 17(6) - appeal disposed off by way of remand.

Summary

Issues:
- Appeal against modification of assessment order in Bills of Entry by Commissioner (Appeals)
- Validity of direction for passing a speaking order by Commissioner (Appeals) under Section 17(6) of the Customs Act, 1962

Analysis:
1. The appeals were filed by the Revenue challenging the modification of assessment orders in Bills of Entry by the Commissioner (Appeals). The main contention of the Revenue was that the Commissioner (Appeals) exceeded his authority by directing the assessing authority to pass a speaking order on re-assessment instead of deciding the matter on merit directly. The issue for consideration was whether the direction for a speaking order by the Commissioner (Appeals) was valid.

2. The Tribunal noted that the limited issue before them was to determine the correctness of the Commissioner (Appeals) directing the Assistant Commissioner/assessing authority to pass a speaking order for loading the value of imported goods and complying with Section 17(6) of the Customs Act, 1962. It was observed that the re-assessment was done arbitrarily at the assessing authority stage without a speaking order, which was a violation of the re-assessment process as per Section 17(6). Since the Commissioner (Appeals) did not have a speaking order to consider, it was deemed appropriate for him to direct the assessing authority to pass a fresh order on assessment after complying with the provisions of Section 17(6).

3. The Tribunal found no fault in the direction given by the Commissioner (Appeals) in the impugned order. Consequently, all the appeals were disposed of by remanding them to the adjudicating authority/assessing authority for deciding the re-assessment through a speaking order. It was emphasized that the assessing authority must adhere to the principles of natural justice while conducting the re-assessment process. The judgment was pronounced on 31.01.2018 by the Tribunal.