2021 (12) TMI 858 - HC - Customs

Valuation of imported goods - import of consignment of automobile parts from Malaysia - assessment of Bill of Entry without taking into consideration of the discount 50% given to the petitioner by the overseas seller in the invoice - Section 17 of the Customs Act, 1962 - HELD THAT - It is to be noticed that the order of the Appellate Commissioner has not been implemented by the 2nd respondent. In fact, the 2nd respondent as an Assessing Officer is bound to implement the order of the Appellate Commissioner - In absence of a valid challenge to the order of the Appellate Commissioner, the 2nd respondent has no choice but to pass a speaking order. The 2nd respondent is directed to pass appropriate orders on merits and in accordance with law and implement the order of the Commissioner of Customs (Appeal) Order - Petition allowed.

Summary

Issues involved:
1. Assessment of imported goods without considering discount offered by overseas seller.
2. Failure to implement Appellate Commissioner's order by the Assessing Officer.
3. Maintainability of the writ petition.

Analysis:

Issue 1: Assessment of imported goods without considering discount offered by overseas seller
The petitioner imported automobile parts from Malaysia and filed a Bill of Entry for clearance at discounted rates. However, the Deputy Commissioner of Customs assessed the Bill without considering the 50% discount offered by the overseas seller. The petitioner paid the duty under protest and appealed the assessment under Section 128 of the Customs Act, 1962. The Appellate Commissioner allowed the appeal, directing the jurisdictional authority to issue a speaking order vacating the protest within 15 days. Despite representations and a legal notice, the order was not implemented by the 2nd respondent, leading to the writ petition.

Issue 2: Failure to implement Appellate Commissioner's order
The High Court emphasized the importance of implementing orders of higher appellate authorities, citing the decision in Union of India vs. Kamalakshi Finance Corporation Ltd. The Court highlighted that the Assessing Officer is bound to implement the Appellate Commissioner's order. In the absence of a valid challenge to the order, the 2nd respondent was directed to pass a speaking order within 30 days and implement the Commissioner of Customs Appeal's order dated 03.12.2009.

Issue 3: Maintainability of the writ petition
The learned Standing Counsel for the respondents argued that the writ petition was not maintainable. However, the Court found that the order of the Appellate Commissioner had not been implemented, indicating a clear failure on the part of the Assessing Officer. Citing the Supreme Court's observations on judicial discipline and the need to give effect to higher appellate authorities' orders, the Court allowed the writ petition, directing the 2nd respondent to pass appropriate orders and implement the Appellate Commissioner's order within the specified timeline.

Overall, the judgment addressed the issues of incorrect assessment, failure to implement appellate orders, and the importance of judicial discipline in upholding the rule of law within the customs framework.