2024 (6) TMI 1014 - AT - Customs

Assessment of Bill of entry contrary to self assessment - Rejection of appeals without deciding the issue on merits taking the recourse of Section 17(5) of the Customs Act 1962 - N/N. 29/2010-Cus dated 27.02.2010 - HELD THAT - In the present case after rejection of the appellant s claim of benefit under the above said notifications as declared in their Bills of Entry they paid the duty under protest and preferred appeal before the learned Commissioner(Appeals). Therefore the learned Commissioner(Appeals) ought to have decided the appeals on merits instead of rejecting the same by observing that the appellant has accepted the assessment. Further the Hon ble Supreme Court in the case of ITC LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE KOLKATA -IV 2019 (9) TMI 802 - SUPREME COURT has held that Revenue as well as appellant can prefer an appeal against the order of the assessment. The impugned order is set aside and the case is remanded to the learned Commissioner (Appeals) to decide all the issues on merit after affording an opportunity of hearing to the appellant. Since the assessment involved in the appeals is around a decade old it is directed that the denovo proceeding be completed within three months from the date of communication of this order. Appeal is allowed by way of remand.

Summary

Issues:
- Justification of rejecting appeals without deciding on merits under Section 17(5) of the Customs Act, 1962.

Analysis:
The case involved appeals against an order passed by the Commissioner of Customs (Appeals), where the appellant had initially claimed benefits under a specific notification but later revised their Bills of Entry without claiming those benefits. The Commissioner rejected the appeals, stating that once goods are cleared for home consumption, the assessment is final. The main issue was whether the Commissioner was justified in rejecting the appeals without deciding on the merits based on Section 17(5) of the Customs Act, 1962.

The Tribunal found that the Commissioner should have decided the appeals on their merits rather than rejecting them based on the assumption that the appellant had accepted the assessment. Citing the case of ITC Ltd. Vs. CCE, Kolkata-IV, the Tribunal emphasized that both the revenue and the appellant have the right to appeal against an assessment order. The Tribunal highlighted that the order of self-assessment is appealable by any aggrieved party, as per the provisions of Section 128 of the Act. The Tribunal set aside the impugned order and remanded the case to the Commissioner to decide all issues on merit, providing an opportunity for the appellant to be heard.

The Tribunal directed that the denovo proceeding be completed within three months from the date of communication of the order, keeping all issues open for consideration. Ultimately, the appeal was allowed by way of remand, emphasizing the importance of deciding cases on their merits rather than assuming acceptance of assessment.