2025 (3) TMI 344 - AT - Customs

Classification of imported other woven fabrics of polyester staple fibre unbleached of Bangladesh origin - to be classified under HS Code 5512 1110 or under CTH 5407 52 90? - the assessment before higher authorities not challenged - HELD THAT - The appellant has got the Bills of Entry assessed by the customs officials. Since the assessment has been done in 2007 this is not a case of self-assessment. In the case of normal assessment (not being provisional assessment) it is deemed that the same attains finality unless the same is challenged before the appellate authority - In the present case the Department is in error in not challenging this order before the appellate authority and by directly issuing another Show Cause Notice to re-classify the goods. On this issue in the case of Priya Blue Industries v. Commissioner of Customs (Preventive) 2004 (9) TMI 105 - SUPREME COURT the Hon ble Supreme Court has held that So long as the Order of Assessment stands the duty would be payable as per that Order of Assessment. A refund claim is not an Appeal proceeding. The Officer considering a refund claim cannot sit in Appeal over an assessment made by a competent Officer. The Officer considering the refund claim cannot also review an assessment order. In the present case the Revenue was definitely required to challenge the assessment order of the Bill of Entry which was passed in 2007 which has not been done. While Priya Blue dealt with the issue of non-challenging of assessment order by the assessee the present case is that of nonchallenging of the assessment by the revenue before embarking on revision of classification of goods. Conclusion - The entire proceeding initiated by the Revenue without challenging the assessment order was flawed. The impugned order is set aside - appeal allowed.

Summary

The Appellate Tribunal considered the issue of classification of imported fabrics in a case where the Revenue sought to reclassify the goods after a significant period from the original assessment. The core legal questions revolved around the validity of the Show Cause Notice issued by the Revenue, the finality of the original assessment, and the implications of not challenging the assessment before higher authorities.The Tribunal analyzed the case in detail, considering the relevant legal framework and precedents. The Tribunal noted that in cases of normal assessment, the assessment attains finality unless challenged before the appellate authority. Citing the case of Priya Blue Industries v. Commissioner of Customs, the Tribunal emphasized the importance of challenging assessment orders before initiating reclassification proceedings. The Tribunal held that the Revenue's failure to challenge the original assessment order before reclassifying the goods was erroneous.The Tribunal found that the Revenue's actions were not in line with legal principles established in the Priya Blue case. The Tribunal concluded that the entire proceeding initiated by the Revenue without challenging the assessment order was flawed. As a result, the Tribunal set aside the impugned order and allowed the appeal filed by the appellant.In summary, the Tribunal's significant holdings include the following:- The finality of assessment in cases of normal assessment unless challenged before the appellate authority.- The importance of challenging assessment orders before initiating reclassification proceedings.- The erroneous nature of the Revenue's actions in this case due to not challenging the original assessment order.- The decision to set aside the impugned order and allow the appeal filed by the appellant, with eligibility for consequential relief as per the law.