Re-assessment of Customs Duty cannot be Done at Request of Party who has Self-Assessed Bill of Entry and wants another Benefit after Clearance: CESTAT

In a recent decision the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the re-assessment of customs duty cannot be done at request of party who has self-assessed bill of entry and after clearance wants another benefit.

The appellant,Navratan Speciality Chemicals, imported knitted polyester fabric classifiable under Sub-heading 6006 3100 of the First Schedule to the Customs Tariff Act, 1975 under the cover of Bills of Entry dated 17-01-2013 and 22-01-2013 by availing the benefit of Sr. No. 12 of the Notification No. 21/2012-Customs dated 17-03-2012 without paying 4% SAD on the said goods.

All goods, specified in the First Schedule to the Additional Duty of Excise (Goods of Special Importance) Act, 1957 are exempted from the levy of Special Additional Duty of Customs in terms of Sl. No. 50 of Notification No. 20/2006-Customs dated 01-03-2006 till 16-03- 2016 and thereafter in terms of Sl. No. 12 of Notification No. 21/2012- Customs dated 17-03-2012.

With effect from 08-04- 2011, the impugned goods became chargeable to Special Additional Duty of Customs at 4% ad-valorem in terms of Notification No. 19/2006-Customs dated 01-03-2006 in as much as the said goods ceased to be 'goods specified in the First Schedule to the Additional Duty of Excise (Goods of Special Importance) Act, 1957.

The original adjudicating authority allowed re-assessment of Bill of Entry and after considering both the above issues demanded the SAD but allowed APTA benefit by doing re-assessment of bill of entry at his own level of the self-assessed Bill of Entry.

The Commissioner (Appeals) on appeal having been made by the revenue seeking denial of the APTA benefit to the appellant, on the ground that the same was never an issue in the show cause notice and re-assessment done in the proceeding relating to demand of SAD was illegal and improper, allowed the department’s appeal.

The Coram comprising Raju, Technical Member and Somesh Arora, Judicial Member observed that “Nothing in the expression of Section 17(4) of the Customs Act, 1962 indicates that re-assessment of duty can be done at the request of party which has self-assessed its Bill of Entry and after clearance wants another benefit.”

“Therefore, construing the expression “or otherwise” in Section 17 (4) of the Customs Act, 1962 by the rule of Noscitur a Sociis, we are of the considered opinion that material has to be of the nature found out on verification, examination or testing of the goods or otherwise (which expression) can include on investigation etc., indicating to the Proper Officer only that the self-assessment was not done correctly” the Bench opined.

To Read the full text of the Order CLICK HERE

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