Home Case Index All Cases Customs Customs + HC Customs - 2021 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 1042 - HC - CustomsInadvertent mistake in self-assessed Bills of Entry - Seeking Direction to the respondents to reassess the customs duty - 8 Slot Single Chassis (Cisco Routers) - Correction of Customs Tarrif Heading (CTH) from 85176990 to 85176930 - Stand taken in the affidavit is that petitioner had imported goods declared as routers under five Bills of Entry bearing Nos.2434172, 2436049, 2522910, 2805152 and 2968920 - 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? - availability of remedy of appeal. HELD THAT:- The scheme of section 17 from the perspective of the importer (since in this case we are dealing with imports) is that an importer upon entering his imported goods is required to self assess the duty leviable on such imported goods. This is subject to verification and examination by the proper officer. If upon verification or examination etc. the proper officer fnds that the self assessment is not done correctly, he may re-assess the duty leviable on such goods. In a case where re-assessment is contrary to self assessment and where the importer does not confirm his acceptance of such re-assessment, the proper officer shall pass a speaking order on the reassessment - therefore, it is quite evident that though duty is cast upon an importer to self assess the customs duty leviable on the imported goods, a corresponding duty is also cast upon the proper officer to verify and examine such self assessment. Such verification and examination has to be done in good faith and in the process of verification or examination if the proper officer finds that there is mis-classification of tariff head or wrong classification of tariff head of the imported goods leading to lesser levy of customs duty or excess levy of customs duty, he has the power and authority under sub-section (4) to make re-assessment and re-assess the duty leviable on such goods. From a conjoint reading of the aforesaid provisions of the Customs Act, it is evident that customs authorities have the power and jurisdiction to make corrections of any clerical or arithmetical mistakes or errors arising in any decision or order due to any accidental slip or omission at any time which would include an order of self-assessment post out of charge. In the instant case, petitioner has not sought for any refund on the basis of the self-assessment. It has sought re-assessment upon amendment of the Bills of Entry by correcting the customs tariff head of the goods which would then facilitate the petitioner to seek a claim for refund. This distinction though subtle is crucial to distinguish the case of the petitioner from the one which was adjudicated by the Supreme Court and by this Court - Grievance of the petitioner is not on the merit of the self-assessment as the petitioner is aggrieved by the failure on the part of the respondents to carry out amendment in the Bills of Entry by replacing the incorrect CTH by the correct one namely by replacing CTH '85176990' with '85176930' which was declared inadvertently by the petitioner at the time of fling the Bills of Entry. This request of the petitioner, falls squarely within the domain of section 149 read with section 154 of the Customs Act. Upon amendment in the Bills of Entry by correcting the CTH, consequential re-assessment order under section 17(4) of the Customs Act would be in order. Madras High Court in M/S. HEWLETT PACKARD ENTERPRISE INDIA PRIVATE LIMITED VERSUS JOINT COMMISSIONER OF CUSTOMS, DEPUTY COMMISSIONER OF CUSTOMS, THE PRINCIPAL COMMISSIONER OF CUSTOMS, UNION OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE [2020 (10) TMI 970 - MADRAS HIGH COURT] correctly held that in a case of correction of inadvertent error, the appropriate remedy would be seeking an amendment to the Bills of Entry and not fling of appeal because there is no legal flaw in the order of self-assessment amenable to appeal but only a factual mistake which can be rectified by way of amendment or correction. The petitioner has made out a case for issuance of a direction to the respondents for correction of the mistake or error in classification of the goods from CTH '85176990' to '85176930' and thereby for amendment of the Bills of Entry. Refusal of the respondents to look into the aforesaid grievance of the respondents is therefore not justified - Direction issued. Petition disposed off.
|