Retrospective application of customs circulars cannot impose additional duty unless expressly authorised.

A customs circular classifying tablet computers under Heading 8471 was treated as prospective only because the imports had occurred before the circular was issued. In the absence of express retrospective authorisation, a fiscal circular or levy cannot be applied to earlier periods to impose additional duty. The demand for the prior period was therefore not sustainable, while the benefit arising from the classification guidance was confined to the period covered by the circular.

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Issues: Whether the customs circular classifying tablet computers under Heading 8471 could be applied retrospectively to imports made prior to its issuance, and whether additional duty could be levied for the earlier period on that basis.

Analysis: The imports in question were made before the Board issued Circular No. 20/2013-Cus. The Tribunal held that the benefit of the Commissioner (Appeals) was confined to the period not covered by the circular. It also held that a fiscal levy cannot be enforced retrospectively unless such retrospective operation is expressly provided. In the absence of any such express mandate, the circular could not be used to levy additional duty for the prior period.

Conclusion: The circular was held to operate prospectively only, and the demand for the earlier period was not sustainable.

Ratio Decidendi: A fiscal circular or levy cannot be applied retrospectively to impose additional duty for a prior period unless retrospective operation is expressly authorised.

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