Reassessment based on subsequent Customs Duty Revision Notification Invalid: Gujarat HC grants refund to Adani Wilmar Ltd [Read Order]

A Division Bench of the Gujarat High Court recently granted a major relief to Adani Wilmar Limited, a manufacturer under Adani Group owing to the Customs Duty revision notification published in e-Gazette after the payment of the duty to the revenue. The impugned reassessment orders of the bills of entry were also quashed.

According to the petitioner, it is a non-speaking and unreasoned order coupled with the fact that it is contrary to the provisions of Section 17(5) of the Customs Act, 1962. The reassessment order was passed with regard to the bill of entry after the notification was published in the e-Gazette.

It is pertinent to note that the revision notification was published subsequent to the presentation of  the same for home consumption.

The High Court Bench comprising Justice Sonia Gokani and Justice Nisha M Thakore observed that, “It is thus quite clear that when Section 25 of the Act empowers the Central Government to exempt either totally or subject to certain conditions from the whole or any part of the customs duty leviable thereon by a Notification in the Official Gazette, it has also the powers to modify and cancel.”

It was also observed that the power of reassessment under Section 17(4) of the Customs Act could not have been exercised as it was not a case of incorrect self assessment of duty.

Subsequently observing that, “The duty was correctly assessed at the time of self assessment in terms of the duty which was in force on that date and at the time”, the Gujarat High Court held that the subsequent publication of notification was no ground for re-assessment.

The reassessment was subsequently set aside along with a direction to refund the differential of 14% that was paid by the applicant in excess to the 40% previously determined duty. An interest of 6% p.a on the refund amount of Rs. 2,81,77,678/- from the date of deposit to the date of refund was also directed to be paid along with the refund.

To Read the full text of the Order CLICK HERE

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