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2025 (3) TMI 1194 - AT - CustomsDenial of rectification of error for finalization of assessment of Shipping Bill under Section 154 of the Customs Act 1962 - while finalizing the Shipping Bills no consideration of judicial pronouncements and the circulars cited hereinabove is clerical mistakes/omissions in terms of Section 154 of the Customs Act 1962 on the part of the proper officer or not? - HELD THAT - What is the clerical error/mistake apparent on record has been examined by this Tribunal in the case of Sesa Goa Limited 2010 (9) TMI 948 - CESTAT MUMBAI wherein this Tribunal has observed As per the law dictionary omission means neglect or failure to perform what the law requires and in this case law requires to assess the Bill of Entry after taking note of the decision of TISCO which was omitted by the proper officer. If for such omissions or errors committed by the proper officer the same is to be corrected while dealing with refund claims filed by appellant the same will tantamount to be done under Section 154 of the Customs Act 1962. That is why the legislature incorporated the Section 154 of the Customs Act into the statute book to rectify such omission or error without challenging the assessment. As in the case the decision the Hon ble Apex Court and the Circular dated 17.02.2012 was in public domain in that circumstances it is the duty of the adjudicating authority to take cognizance all the judicial pronouncements and the Circulars and thereafter to pass the proper order which the adjudicating authority has failed to do so in the case in hand while finalizing the Shipping Bills. Conclusion - It is held that it is an error arose from accidental omissions on the part of the assessing officer under Section 154 of the Customs Act 1962 as held by this Tribunal in the case of M/s Sesa Goa Limited. Consequently finalization of the assessment done by the adjudicating authority for determining of the Fe content on DMT instead of WMT basis is bad in law. Therefore the said omission is required to be rectified by the adjudicating authority and the consequential benefit is to be given to the appellant by rectifying the omission under Section 154 of the Customs Act 1962 and thereafter to determine the Fe content on the basis of WMT basis and pass an appropriate order in accordance with law. The impugned order is set aside - appeal allowed.
ISSUES PRESENTED and CONSIDERED
The core legal questions considered in this judgment revolve around the following issues:
ISSUE-WISE DETAILED ANALYSIS 1. Assessment Basis for 'Fe' Content Determination - Relevant Legal Framework and Precedents: The Supreme Court in Gangadhar Narsingdas Aggarwal established that the assessment of iron ore fines for export duty purposes should be based on the WMT basis. Circular No. 4/2012-Cus further clarified this position. - Court's Interpretation and Reasoning: The Tribunal noted that the proper officer, while finalizing the assessment, failed to consider the judicial pronouncements and circulars that mandated the assessment on the WMT basis. This oversight led to the assessment being made on the Dry Metric Tonne (DMT) basis instead. - Key Evidence and Findings: The Tribunal found no dispute on the merit that the Shipping Bills should have been assessed on the WMT basis. The appellant's request for rectification was based on established legal precedents and circulars that were not considered by the assessing officer. - Application of Law to Facts: The Tribunal applied the Supreme Court's ruling and the circular to conclude that the assessment should have been conducted on the WMT basis, and the failure to do so was an error. - Treatment of Competing Arguments: The respondent argued that the assessment was based on the appellant's declarations and did not require correction. However, the Tribunal found that the failure to apply the correct basis was a significant omission. - Conclusions: The Tribunal concluded that the assessment should have been finalized on the WMT basis, and the failure to do so was an error that required rectification. 2. Clerical or Accidental Omission under Section 154 - Relevant Legal Framework and Precedents: Section 154 of the Customs Act, 1962, allows for the correction of clerical or arithmetical mistakes or errors arising from accidental slips or omissions in any decision or order. - Court's Interpretation and Reasoning: The Tribunal referenced its previous decision in Sesa Goa Limited, which held that the omission to apply a judicial decision or circular constitutes an accidental omission under Section 154. - Key Evidence and Findings: The Tribunal found that the adjudicating authority's failure to consider the Supreme Court's decision and the circular constituted an accidental omission. - Application of Law to Facts: The Tribunal applied Section 154 to determine that the error in the assessment was due to an accidental omission, warranting rectification. - Treatment of Competing Arguments: The appellant argued for rectification based on the omission, while the respondent maintained that no clerical error was present. The Tribunal sided with the appellant, finding the omission significant enough to warrant correction. - Conclusions: The Tribunal concluded that the error arose from an accidental omission under Section 154, and the assessment should be rectified accordingly. SIGNIFICANT HOLDINGS - Preserve verbatim quotes of crucial legal reasoning: The Tribunal held, "it is an error arose from accidental omissions on the part of the assessing officer under Section 154 of the Customs Act, 1962." - Core principles established: The Tribunal reinforced the principle that failure to apply established judicial decisions and circulars in assessments constitutes an accidental omission that can be rectified under Section 154. - Final determinations on each issue: The Tribunal set aside the impugned order, allowing the appeal with consequential relief. The assessment was ordered to be rectified to consider the 'Fe' content on the WMT basis, granting the appellant the benefits thereof.
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