2021 (11) TMI 697 - AT - Customs

Refund of Customs Duty paid - denial on the ground that the appellant had not filed any appeal against the 26 orders of final assessment order for finalizing provisional assessment - HELD THAT - The learned counsel has made reference of Section 154 of Customs Act, 1962 whereby the assessment can be amended by Reassessment of Bill of Entry. However, on query from the bench learned counsel fairly submits that they have not filed any application under section 154 of the Customs Act, 1962. In this position, in the interest of the justice the appellant should be given an opportunity to pursue their case in terms of section 154 of Customs Act, 1962. The appellant is directed to make an application under section 154 of the Customs Act, 1962 for Re- assessment of Bills of Entry. The Proper officer shall consider the application to be made under section 154 of the Customs Act, 1962 in accordance with law - the appeal is disposed of by way of remand to the Original Authority.

Summary

Issues:
1. Rejection of refund claims based on failure to appeal against final assessment orders for provisional assessment.

Analysis:
The case involved the appellant importing crude petroleum oil and storing it in a private bonded warehouse. Discrepancies were noted in the quantity discharged at the warehouse compared to the Bill of Lading and Invoices. The assessing officer enhanced the invoice value to account for the excess received goods. The Commissioner (Appeals) set aside the final assessment orders and directed reassessment considering various factors like Address Commission on Freight/Demurrage and charging NCCD on shore tank receipt quantity. The Customs Superintendent reassessed the bill of entries as per the Commissioner's directions. Subsequently, the appellant filed refund claims, which were rejected due to the failure to appeal against the original final assessment orders.

The appellant contended that there was no need to file an appeal against the assessment order made by the Assessing Officer at Vadodara as the reassessment was supposed to be done suo moto by the department. It was argued that the purpose of requesting reassessment was to implement the order passed by the Proper Officer at Vadinar following the Commissioner's directions. The appellant emphasized that this was not an independent challenge against the earlier assessment order.

On the contrary, the revenue argued that based on a Supreme Court judgment, the appellant was obligated to challenge the reassessment order passed by the Proper Officer at Vadodara. The Tribunal examined the submissions and noted the reference to Section 154 of the Customs Act, allowing for the amendment of assessment through reassessment of the Bill of Entry. However, it was revealed that no application under Section 154 had been filed by the appellant.

The Tribunal, in the interest of justice, directed the appellant to make an application under Section 154 of the Customs Act for the reassessment of Bills of Entry. The Proper Officer was instructed to consider the application in accordance with the law. Consequently, the appeal was disposed of by remanding the case to the Original Authority for further proceedings.