2021 (3) TMI 729 - AT - Customs

Valuation of imported goods - requirement of speaking order, for enhancement of value of goods - time limitation of filing appeal - Section 17(5) of the Customs Act, 1962 - HELD THAT - In case of assessment done under Section 17(4) of the Customs Act, 1962, wherein the re-assessment has been accepted by the assessee importer, the proper officer shall pass a speaking order on the reassessment within 15 days on the date of re-assessment of the bills of entry. Admittedly, in this case, no speaking order under Section 17(5) of the Customs Act, 1962 has been passed till date. The appellant initially waited for the order under Section 17(5) of the Customs Act, 1962. Later on, made a protest or grievance before the authorities below and the said request was rejected. Time Limitation - HELD THAT - When no order has been passed under Section 17(5) of the Customs Act, 1962, which is mandate in law that a speaking order is required to be passed in writing within 15 days of the reassessment of bills of entry, it can be ordered that the appeal filed before the ld. Commissioner (Appeals) is not barred by limitation. In the absence of the order under Section 17(5) of the Customs Act, 1962, it is directed that the adjudicating authority to pass a speaking order for re-assessment in writing from 15 days of received of this order - appeal allowed by way of remand.

Summary

Issues:
1. Whether a speaking order under Section 17(5) of the Customs Act, 1962 is required after loading of value and if the CHA was authorized to accept the enhanced value of imported goods.
2. Whether the appeal challenging the assessment filed in 2018 is barred by limitation.

Analysis:
Issue 1:
The appellant challenged the impugned order on the grounds that a speaking order under Section 17(5) of the Customs Act, 1962 was necessary after loading of value, and the CHA was not authorized to accept the enhanced value. The ld. Commissioner (Appeals) held that the appeal was time-barred. The provisions of Section 17(5) mandate a speaking order within 15 days of reassessment if the importer does not confirm acceptance in writing. In this case, no such order was passed, and the appellant's request for it was rejected. Therefore, the appeal is not barred by limitation, as the speaking order was never issued as required by law.

Issue 2:
The order under Section 17(5) of the Customs Act, 1962 must be passed by the assessing officer within 15 days of reassessment. As no such order was issued in this case, the adjudicating authority is directed to pass a speaking order within 15 days of receiving this order. The appeal is disposed of by way of remand, keeping all other issues open for further consideration.