The Bombay High Court directed the Custom Authority to reassess the customs duty in respect of Bills of Entry.
The Company, Dimension Data India Private Ltd. imported goods (routers) classifying them under Customs Tariff Heading (CTH) 85176990 instead of 85176930 which is a specific tariff heading leading to excess payment of customs duty.
Immediately upon knowledge of the same, the Company made a request with the jurisdictional Deputy Commissioner of Customs (Proper Officer) for amendment of Bill of Entries (BoE) in terms of Section 17(4) read with 149 and Section 154 of Customs Act. Since the request was not processed by the Deputy Commissioner, the Company was constrained to approach the High Court by way of writ petition invoking Article 226 of the Constitution of India.
The respondent authority had informed the petitioner that consequent upon amendment to section 17 of the Customs Act made in the year 2011, concept of ‘self-assessment’ has been introduced in the Customs Act effective from 08.04.2011 which provides for self-assessment of duty on imported goods by the importer himself by fling Bill of Entry in the electronic form. Therefore, burden is on the importer to ensure that he declares the correct classification and applies the correct rate of customs duty.
The issue raised in the appeal was whether request of the petitioner for correction of inadvertent mistake or error in the self-assessed Bills of Entry and consequential passing of orders for re-assessment is legal and valid and whether even in a case of this nature, petitioner is required to be relegated to the remedy of appeal.
The petitioner had self assessed the Bills of Entry in terms of section 17 of the Customs Act. Bills of Entry were facilitated under the Risk Management System (RMS). The goods have since been out charged. Process of import is complete. To re-open the assessment at this stage, the petitioner is required to challenge the order of assessment by filing an appeal before the Commissioner of Customs (Appeals).
The coram consisting of directed respondent authority to consider the prayer of the petitioner for amendment of the Bills of Entry Nos. 2434172, 2436049, 2522910, 2805152 and 2968920 (annexed as Annexure B colly to the writ petition) by exercising power under section 149 read with section 154 of the Customs Act and thereafter pass an appropriate order under section 17(4) of the Customs Act after giving due opportunity of hearing to the petitioner.
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