2018 (11) TMI 1097 - AT - Customs

Jurisdiction - appeals before the first appellate authority has been dismissed without going into the merits merely on the ground of jurisdiction - section 129A(3) of Customs Act, 1962 - Held that - Unlike the scheme of assessment prevailing till then, reassessment, when self-assessment is disagreed with by the proper officer, would be completed only with the issue of a speaking order. It was incumbent upon the proper officer to issue the mandatory speaking order which, combined with the re-assessment in the bill of entry, constitutes the cause of action or appealable order. The failure on the part of the proper officer to comply with the legal provisions cannot be held to the detriment of the importer. Even assuming a determined obduracy on the part of the proper officer to defy this legal requirement, the period stipulated for issue of such speaking order is fifteen days from the date of reassessment. It has been noted by the first appellate authority that the appeals were filed on the 91st and 105th day from the date of assessment which, in the present instance, is re-assessment. The appeals would certainly be within the period permitted for doing so if the relevant date is construed as date on which the re-assessment is deemed to be completed with the expiry of the period stipulated for issue of speaking order. The impugned order as well as the assessments in the bills of entry is set aside - matter remanded back to the original authority to rectify the breach of law and issue a speaking order justifying the decision to re-assess the goods within fifteen days of receipt of this order - appeal allowed by way of remand.

Summary

Issues:
Appeal against order-in-appeal dismissed on jurisdictional grounds.

Analysis:
The judgment revolves around the dispute of M/s Ramesh Bearing Enterprise against order-in-appeal no. 17 & 18 (Gr. VA)/2011 of Commissioner of Customs (Appeals), Nhava Sheva. The central issue is the compliance with the statutory prescription in section 129A(3) of the Customs Act, 1962. The first appellate authority dismissed the appeals without delving into the merits solely based on jurisdictional grounds. The impugned order highlighted that the appeals were filed beyond 90 days following the assessment, rendering them beyond the legal competence to entertain. However, a significant legal amendment mandating a speaking order on reassessment within 15 days from the date of reassessment altered the relevant date for appealability. The failure to issue a speaking order by the proper officer, combined with the re-assessment, constitutes the cause of action or appealable order. The judgment underscores that the importer should not suffer due to the improper compliance of legal provisions by the proper officer.

The judgment further emphasizes that the period for issuing a speaking order is crucial, and the appeals filed on the 91st and 105th day from the date of assessment could be within the permissible period if the relevant date is construed as the completion of reassessment. The appellate authority found that remanding the matter to proceed with disposal on merits would serve no purpose and might encourage deliberate defiance of legal mandates. Therefore, the judgment sets aside the impugned order and assessments in the bills of entry, remanding the matter to the original authority to rectify the breach of law and issue a speaking order justifying the decision to reassess the goods within fifteen days of receipt of the order. The judgment aims to uphold legal obligations and discourage casual disregard of statutory requirements.