Final customs assessment cannot be reopened for reclassification, and later circulars cannot alter completed clearances retrospectively.

A final customs assessment of a Bill of Entry cannot be reopened for reclassification and higher duty unless the Revenue first challenges that assessment in accordance with law. The later departmental circular could not be applied retrospectively to completed clearances, because such circulars operate prospectively and cannot alter an already concluded assessment. On both issues, the position favoured the assessee, and the demand based on reopening the assessment and relying on the later circular was set aside.

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Issues: (i) Whether the final assessment of the Bill of Entry could be reopened for reclassification and higher duty without the Revenue challenging the assessment; (ii) whether a Board circular issued after clearance could be applied retrospectively to alter the classification.

Issue (i): Whether the final assessment of the Bill of Entry could be reopened for reclassification and higher duty without the Revenue challenging the assessment.

Analysis: The assessment had been finalized and was not challenged by the Revenue. Reopening the assessment to adopt a different tariff heading was contrary to the principle that a final assessment cannot be disturbed without first assailing it in accordance with law.

Conclusion: The reopening of the final assessment for reclassification was not sustainable and the issue was decided in favour of the assessee.

Issue (ii): Whether a Board circular issued after clearance could be applied retrospectively to alter the classification.

Analysis: The circular relied upon by the Revenue was issued after the goods had been cleared. Such circulars operate prospectively and cannot be used to revise completed assessments for an earlier period.

Conclusion: The circular could not be applied retrospectively and this issue was also decided in favour of the assessee.

Final Conclusion: The demand based on reopening of the concluded assessment and retrospective reliance on the later circular was set aside, entitling the assessee to relief.

Ratio Decidendi: A final assessment cannot be reopened for a fresh classification unless it is first challenged in law, and a departmental circular cannot be applied retrospectively to completed clearances.

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