2018 (6) TMI 1496 - HC - Customs

Classification of imported goods - encoders, modulators and multiplexers - whether classifiable under Heading 8517 or under Heading 8528? - Held that - It is directed that the competent authority shall proceed to hear and dispose of the show cause notices. Since the notices have been issued way back in the year 2014, it may be desirable to hear them expeditiously. Subject to the cooperation of the petitioner, the competent authority will take a final decision on such SCN latest by 15-2-2018 - petition disposed off.

Summary

Issues:
Classification of imported equipments under Heading 8517 or 8528; Department issuing show cause notices for higher customs duty on past imports; Delay in adjudication due to pending DRI investigation; Department collecting higher duty on provisional basis for current imports.

Classification Dispute:
The petitioner, a company engaged in manufacturing communication equipment, imports encoders, modulators, and multiplexers, claiming classification under Heading 8517. The department argues for classification under Heading 8528. The court refrains from deciding the classification but notes the ongoing dispute.

Delay in Adjudication:
The department issued show cause notices to collect higher customs duty on past imports, but delayed adjudication due to pending DRI investigation suspecting duty evasion. Meanwhile, the department started collecting higher duty on a provisional basis for current imports, causing financial burden on the petitioner. The court finds this situation unfair to the assessee.

Court's Decision:
The court deems the department's actions unfair and directs the competent authority to expedite the adjudication of show cause notices issued in 2014. The department is instructed to hear and dispose of the notices by 15-2-2018. The respondents assure that adjudication can be completed promptly if the court issues appropriate directions. Both petitions are disposed of accordingly, allowing direct service.