1994 (8) TMI 106 - AT - Customs

Summary

Issues:
Jurisdiction of Special Bench vs. Regional Bench
Correct date determination for rate of duty and interest calculation
Compliance with remand order for re-assessment
Infirmities in impugned order
Demand of interest under Section 28 of Customs Act

The judgment dealt with the issue of jurisdiction, specifically whether the matter should be heard by the Special Bench or the Regional Bench. The Departmental Representative argued that the jurisdiction lies with the Regional Bench based on a Supreme Court judgment in a similar case. However, the Counsel opposed, stating that the determination of relevant dates directly impacts the correct rate of duty for assessment, making the jurisdiction of the present Bench appropriate. The Tribunal agreed with the Counsel, emphasizing the direct connection between the determination of relevant dates and the rate of duty for assessment, thus holding that the matter falls under the jurisdiction of the present Bench.

The case involved determining the correct dates for assessing the rate of duty and calculating interest on warehouse goods cleared subsequently. The appellants imported goods, filed a Bill of Entry, and cleared the goods from the warehouse at a later date. A demand for interest was raised, which the appellants contested, leading to a series of orders and appeals. The Collector (Appeals) remanded the matter for re-assessment, but the Assistant Collector failed to comply with the directions, leading to further appeals. The Tribunal noted the importance of determining the correct dates for assessing the duty, as it directly impacts the rate of duty for assessment, ultimately deciding that the jurisdiction lies with the present Bench.

Regarding compliance with the remand order for re-assessment, the Counsel argued that the Assistant Collector did not adhere to the directions provided by the Collector (Appeals), which was improper. The Counsel highlighted a previous Tribunal order emphasizing that even a coordinate authority must comply with such directions. The failure to re-assess as directed could have significant financial implications for the appellants, potentially leading to a refund if re-assessment had been carried out correctly.

In analyzing the infirmities in the impugned order, the Counsel raised concerns about the Collector (Appeals) passing the order despite having made up his mind earlier and not complying with the remand directions. The Counsel also pointed out a legal aspect, noting that the notice issued for demanding interest under Section 28 of the Customs Act might not be appropriate, as the section pertains to demanding duty, not interest. However, the Tribunal considered the Counsel's arguments compelling, finding merit in the appellants' case and waiving the pre-deposit amount, staying its recovery during the appeal's pendency.

In conclusion, the judgment addressed various complex issues related to jurisdiction, date determination for duty assessment, compliance with remand orders, infirmities in the impugned order, and the legality of demanding interest under Section 28 of the Customs Act. The Tribunal's decision favored the appellants, highlighting the importance of correctly determining dates for duty assessment and ensuring compliance with remand directions for re-assessment.