2018 (3) TMI 516 - AT - Customs

Validity of assessment order - section 17 of the Customs act 1962 - self assessment - Held that - As per the records available with this office, no speaking order on the reassessment was issued to the appellant - section 17 of the Customs act 1962 stands amended from 08/04/2011, whereby all assessments are now self-assessment by the importer. The provisions of section 17(6) come into play whereby the proper officer is required to audit the a) self assessment of the B/E filed by the importer or b) reassessment by the proper officer without a speaking order - the learned Commissioner (Appeals) observed that the reassessment of Bills of Entry was required to be done only by passing a speaking order as per the conditions of Section 17(6) of the Customs Act, 1962 - the reassessment cannot be made without following the principles of natural justice. Appeal dismissed - decided against Revenue.

Summary

Issues involved:
1. Proper procedure for reassessment of Bills of Entry under Section 17(6) of the Customs Act, 1962.

Detailed Analysis:
The appeal was filed by the Revenue against an Order-in-Appeal passed by the Commissioner (Appeals) regarding the reassessment of Bills of Entry. The Commissioner (Appeals) noted that reassessment should only occur after a speaking order is passed and observed that the assessment of duty needs to be audited by the proper officer as per Section 17(6) of the Customs Act, 1962. The appellant had cleared all goods under the Bill of Entry by paying full duty, and the Commissioner (Appeals) found no need for pre-deposit, proceeding to decide the case on merits. However, the Department did not offer any comments or attend the personal hearing, leading to a challenge by the appellants against the assessment made in the Bill of Entry.

The Tribunal carefully considered the submissions and found that no speaking order on reassessment was issued to the appellant. It was highlighted that Section 17 of the Customs Act, 1962 was amended, making all assessments self-assessments by the importer. The Tribunal examined the provisions of Section 17 in detail, emphasizing the importance of a speaking order in case of reassessment. It was noted that the self-assessment was verified, reassessment was done, but a speaking order as required under Section 17(5) was not issued, leading to the applicability of Section 17(6) for auditing the assessment of duty.

The Tribunal agreed with the Commissioner (Appeals) that reassessment of Bills of Entry should be done only after passing a speaking order in accordance with the principles of natural justice. The Tribunal upheld the decision that a speaking order must be passed for reassessment, dismissing the Revenue's appeal and remanding the case to the Assessing Authority for further action if necessary. The importance of following proper procedures and principles of natural justice in reassessment under the Customs Act, 1962 was emphasized throughout the judgment.