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2013 (1) TMI 254 - AT - CustomsDifferential duty arising as a result of finalisation of provisional assessment - Imported non-coking steaming coal - Sample was tested and the same was found to have Gross Calorific Value (GCV) higher than the declared GCV - Purchase contract had a price variation clause - Assessment was finalised for higher duty adopting higher price proportionate to higher GCV - Bills of entry were finally assessed, simultaneously on the very same day show-cause notice was issued to the appellant Held that:- Bill of Entry has to be assessed and returned to the importer. Further Section 47 of Customs Act, 1962, an importer is required to pay duty within 5 days from the date on which the bill of entry is returned to him for payment of duty and interest becomes payable thereafter. It can also said that in this case the bills of entry were returned with the remarks so that differential duty as and when adjudicated and approved, it would become payable by taking date of return of all bills of entry as the date of finalisation. In this case the bills of entry have been returned and simultaneously the show-cause notice has been issued. If the importer accepts the revision of assessment and differential duty is payable, he can pay the same immediately and in that case no further proceedings are required. Appellant submitted that if he were to challenge the bills of entry assessment order, that also would have been rejected on the ground that the show-cause notice has been issued giving an opportunity to challenge revision of value and differential duty. Even though the Superintendent put the remarks that the bill of entry is assessed finally, he issued the show-cause notice proposing to give an opportunity to challenge the differential duty and merits thereof. This would mean that the assessment was finalised subject to the show-cause notice. This is the only proper and legal interpretation of the proceedings in this case. In view of above discussions, we find that the impugned order taking a view that the assessment is final and therefore the show-cause notice and further proceedings initiated were unwarranted and therefore was invalid cannot be sustained. In favour of assessee
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