2015 (5) TMI 16 - AT - Customs

Speaking order - Commissioner (Appeals) directed the original adjudicating authority (assessing officer) to issue a speaking order regarding the value adopted in respect of goods imported under Bill of Entry - Revenue contends that the value was loaded by 20% automatically taken by the computer system in terms of SVB Order dated 27.8.2010 and that the impugned order cannot be implemented as loading was one by the computer system in terms of the said SVB order dated 27.8.2010 and there was no assessing officer per se - Held that - As the value of the goods was loaded by 20%, the Respondents right for a speaking order cannot be snatched away merely on the ground that it (i.e. the loading) was done automatically by the computer system. Thus, the impugned order requiring issuance of a speaking order regarding the value adopted in this case as per ratio of Section 17(5) of Customs Act, 1962 does not suffer from any legal infirmity. - Decided against Revenue.

Summary

Issues:
- Appeal against order directing issuance of a speaking order regarding the value adopted for imported goods
- Automatic loading of value by computer system based on SVB order
- Requirement of a speaking order under Section 17(5) of the Customs Act, 1962

Analysis:
The appeal in question was filed by the Revenue against an order directing the original adjudicating authority to issue a speaking order concerning the value adopted for goods imported under a specific Bill of Entry. The Commissioner (Appeals) noted that the appellant had contested the assessment carried out on the Bill of Entry, highlighting a lack of clarity on the reasons for the value loading and the valuation adopted. The appellant mentioned that the value was loaded due to an assessment order of SV issue at Mumbai. The Commissioner directed the assessing officer to issue a speaking order as per Section 17(5) of the Customs Act, 1962, to clarify the value adopted in the case.

The Revenue contended that the value was automatically loaded by 20% as per a SVB order dated 27.8.2010, and therefore, the impugned order could not be implemented as there was no assessing officer involved in the process. However, the Tribunal found that the requirement for a speaking order under Section 17(5) of the Customs Act, 1962, was valid in this case. Despite the automatic loading of value by the computer system, the right to a speaking order could not be denied to the Respondent. The Tribunal upheld the direction for the issuance of a speaking order regarding the value adopted, emphasizing that the impugned order did not have any legal flaw. Consequently, the Revenue's appeal was dismissed.