2022 (8) TMI 344 - HC - Customs

Re-assessment of duty - Violation of principles of natural justice - seeking issuance of speaking order in respect of finalized Bills of Entry after complying with the requirements of principles of natural justice - HELD THAT - Section 17 of the Customs Act, 1962 (hereinafter referred to as the 'Act, 1962') provides for assessment of duty. Under sub-section (1) of Section 17, an importer entering any imported goods under section 46 of the Act, 1962 or an exporter entering any export goods under section 50, shall, save as otherwise provided in Section 85, self-assess the duty, if any, leviable on such goods. Sub-section (2) of Section 17 provides for verification of entries and self-assessment of goods referred to in subsection (1) by the proper officer. Sub-section (4) of Section 17 provides for re-assessment of duty by the proper officer where the self-assessment is not done correctly. Sub-section (5) provides that the proper officer shall pass a speaking order on the re-assessment in matters other than those where the importer or exporter, as the case may be, confirms his acceptance of the said re-assessment in writing. There are no doubt that the petitioner himself has confirmed in writing his acceptance of re-assessment. Therefore, there exists no occasion to pass a speaking order on the re-assessment - petition dismissed.

Summary

Issues:
1. Whether the respondent should issue a speaking order in respect of finalized Bills of Entry after complying with the principles of natural justice.

Analysis:
The judgment involves a dispute regarding the issuance of a speaking order in relation to finalized Bills of Entry after complying with the principles of natural justice. The petitioner sought a writ mandamus directing the respondent to issue a speaking order in this regard. The respondent, in a counter affidavit, provided detailed facts stating that the petitioner had self-assessed duty on imported goods under Section 17(1) of the Customs Act, 1962. Subsequently, during verification, queries were raised regarding the declared value of goods. The importer accepted a redetermined value of the goods but requested not to issue a show cause notice or a speaking order. The respondent argued that the petitioner's acceptance of the re-assessment in writing eliminated the need for a speaking order, as per Section 17(5) of the Act.

The judgment delves into the provisions of Section 17 of the Customs Act, 1962, which governs the assessment of duty on imported goods. It outlines the self-assessment process by importers under Section 17(1) and the verification and re-assessment procedures under subsections (2) and (4) respectively. Notably, Section 17(5) mandates the passing of a speaking order by the proper officer in cases where the importer or exporter does not confirm their acceptance of the re-assessment in writing. The court analyzed the facts presented in the counter affidavit and concluded that since the petitioner had confirmed acceptance of the re-assessment in writing, there was no requirement for a speaking order in this case.

In light of the above analysis, the court found no merit in the petitioner's argument and dismissed all the writ petitions collectively. The judgment emphasizes the importance of compliance with statutory provisions and the significance of written acceptance by importers or exporters in determining the necessity of a speaking order in cases of re-assessment. The decision underscores the legal principles governing the issuance of speaking orders in customs matters and highlights the role of written confirmation by parties in such proceedings.