2025 (7) TMI 7 - AT - Customs

Bill of Entry (Assessment Order) is an appealable order or not - rejection of appeal on the ground that the approval of Bill of Entry is no longer an adjudication order as there is no assessment order as such - change of classification - HELD THAT - This issue is no longer res integra in as much as the Hon ble Supreme Court in the case of ITC Ltd. vs. Commissioner of Central Excise 2019 (9) TMI 802 - SUPREME COURT (LB) has clearly held that the Bill of entry is an assessment order which is appealable. The impugned order is set aside and all the three appeals are remanded together to Commissioner (Appeals) for deciding the issue on merits - appeal allowed by way of remand.

Summary

1. ISSUES PRESENTED and CONSIDERED

The core legal question considered by the Tribunal is whether the Bill of Entry, which functions as an assessment order under the Customs Act, is an appealable order. Specifically, the Tribunal examined:

• Whether the Bill of Entry, as a self-assessment order under the Customs Tariff, qualifies as an adjudication order that can be challenged by way of appeal.
• The validity of the lower appellate authority's rejection of the appeal on the ground that the Bill of Entry is not an appealable order.
• The applicability of recent judicial precedents, including the Supreme Court's ruling in ITC Ltd. v. Commissioner of Central Excise, to the issue of appealability of Bills of Entry.

2. ISSUE-WISE DETAILED ANALYSIS

Issue: Appealability of Bill of Entry (Assessment Order)

Relevant Legal Framework and Precedents:

The Tribunal relied primarily on the statutory provisions under the Customs Act and corresponding Customs Tariff headings that govern classification and assessment of imported goods. Section 2(2) defines assessment orders, and Section 128 provides for appeals against "any order" passed under the Act. Section 17 mandates passing of a reasoned order upon verification if self-assessment is found unsatisfactory.

Judicial precedents were pivotal in this analysis, particularly the Supreme Court decision in ITC Ltd. v. Commissioner of Central Excise, which clarified that a Bill of Entry, even if a self-assessment order, is an assessment order and hence appealable. The Tribunal also considered decisions from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and other authorities, including M/s. Ingram Micro India Pvt. Ltd. and M/s. Cisco Commerce India Pvt. Ltd., which aligned with the Supreme Court's position.

Court's Interpretation and Reasoning:

The Tribunal noted that the learned Commissioner (Appeals) had rejected the appellant's appeal on the ground that the Bill of Entry was not an adjudication order and thus not appealable. The Tribunal disagreed with this reasoning, holding that the issue is no longer res integra following the Supreme Court's authoritative pronouncement.

The Tribunal quoted the Supreme Court's observation that "the order of self-assessment is nonetheless an assessment order passed under the Act, obviously it would be appealable by any person aggrieved thereby." The Court emphasized the wide amplitude of the phrase "any person" in the appeal provision, encompassing both revenue and assessee. It further clarified that the absence of a "speaking order" or a formal adjudication process does not preclude the Bill of Entry from being appealable.

Key Evidence and Findings:

The appellant had filed Bills of Entry for import of desktop phones classified under Customs Tariff Heading (CTH) 8517 6290. The appellant sought reclassification under CTH 8517 1810, which was denied. The Commissioner (Appeals) dismissed the appeal on the non-appealability ground. The Tribunal found no merit in this dismissal as it conflicted with the Supreme Court's binding precedent.

Application of Law to Facts:

The Tribunal applied the Supreme Court's interpretation of the Customs Act and appeal provisions to the facts of the case, concluding that the Bill of Entry is indeed an assessment order and therefore appealable. The rejection of the appeal by the Commissioner (Appeals) on the basis that the Bill of Entry is not an appealable order was held to be incorrect.

Treatment of Competing Arguments:

The Revenue's argument, which supported the Commissioner (Appeals)'s view, was considered but found to be contrary to the settled legal position. The Tribunal gave precedence to the binding Supreme Court ruling and recent authoritative decisions, which clarified that the absence of a formal adjudication or speaking order does not negate the appealability of the Bill of Entry.

Conclusions:

The Tribunal concluded that the Bill of Entry qualifies as an appealable assessment order under the Customs Act. The impugned orders rejecting the appeal on non-appealability grounds were set aside. The matter was remanded to the Commissioner (Appeals) for adjudication on merits of classification and related issues.

3. SIGNIFICANT HOLDINGS

The Tribunal's key legal holding is encapsulated in the verbatim reproduction of the Supreme Court's reasoning:

"As the order of self-assessment is nonetheless an assessment order passed under the Act, obviously it would be appealable by any person aggrieved thereby. The expression 'Any person' is of wider amplitude. The revenue, as well as assessee, can also prefer an appeal aggrieved by an order of assessment. It is not only the order of re-assessment which is appealable but the provisions of Section 128 make appealable any decision or order under the Act including that of self-assessment. The order of self-assessment is an order of assessment as per Section 2(2), as such, it is appealable in case any person is aggrieved by it. There is a specific provision made in Section 17 to pass a reasoned/speaking order in the situation in case on verification, self-assessment is not found to be satisfactory, an order of re-assessment has to be passed under Section 17(4). Section 128 has not provided for an appeal against a speaking order but against 'any order' which is of wide amplitude. The reasoning employed by the High Court is that since there is no lis, no speaking order is passed, as such an appeal would not lie, is not sustainable in law, is contrary to what has been held by this Court in Escorts (supra)."

This principle firmly establishes that self-assessment orders, including Bills of Entry, are appealable under the Customs Act.

The Tribunal's final determination was to set aside the impugned orders and remit the appeals to the Commissioner (Appeals) for consideration on merits, thereby preserving the appellant's right to challenge classification and duty assessment decisions through appeal.