2019 (6) TMI 227 - HC - Customs

Classification of imported goods - medical diagnostic equipment used in the health care industry - classified under CTH 90189099 or CTH 84433290? - HELD THAT - The Court is unable to view the impugned letter dated 3rd May, 2019 as an order of provisional assessment. Such an order would have to actually deal with the request made by the Petitioner and give reasons as to why such a request has not been acceded to, if at all, and pass an order setting out the terms on which provisional release of the goods will be permitted. While setting aside the impugned letter dated 3rd May, 2019, this Court directs the authorised representative of the Petitioner to appear before the concerned authority (Assistant or Deputy Commissioner of Customs), ICD, Patparganj, Delhi on 4th June, 2019 at 10.30 am - Petition disposed off.

Issues:
1. Rejection of request for provisional assessment of goods under CTH-90189099.
2. Correct classification of goods as CTH-84433290.
3. Compelled payment of disputed duty without provisional assessment.
4. Impugned letter dated 3rd May, 2019 not considered as an order of provisional assessment.

Issue 1: Rejection of request for provisional assessment of goods under CTH-90189099
The Petitioner was aggrieved by a letter dated 3rd May, 2019 issued by the Assistant Commissioner of Customs, ICD, Patparganj, Delhi, rejecting the Petitioner's request for provisional assessment of goods under CTH-90189099. The goods in question were medical diagnostic equipment used in the health care industry. The Department insisted that the correct classification of the goods should be CTH-84433290.

Issue 2: Correct classification of goods as CTH-84433290
It was brought to the Court's attention that a show-cause notice dated 25th April, 2019 had been issued to the Petitioner regarding earlier consignments of similar goods, with adjudication proceedings pending. The Petitioner approached the Court concerning consignments imported after those covered by the show-cause notice. The Petitioner contended that they were being forced to pay the disputed duty without the benefit of provisional assessment as requested.

Issue 3: Compelled payment of disputed duty without provisional assessment
The Court noted that the impugned letter dated 3rd May, 2019 was not considered as an order of provisional assessment. An order of provisional assessment should address the Petitioner's request, provide reasons for acceptance or rejection, and outline the terms for provisional release of the goods. Consequently, the Court set aside the letter and directed the Petitioner's representative to appear before the concerned authority to request a provisional assessment, with a reasoned order to be issued within a week.

Issue 4: Impugned letter dated 3rd May, 2019 not considered as an order of provisional assessment
The Court directed the authorised representative of the Petitioner to appear before the Assistant or Deputy Commissioner of Customs, ICD, Patparganj, Delhi, on a specified date for consideration of the provisional assessment request. The concerned officer was instructed to pass a reasoned order within a week of the meeting, with a copy to be provided to the Petitioner. The Petitioner was granted the right to seek further legal remedies if dissatisfied with the decision.

In conclusion, the petition was disposed of with the Court's directions for the concerned authority to address the Petitioner's request for provisional assessment in accordance with the law.

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