2021 (5) TMI 209 - AT - Customs

Tribunal Remands Appeal Decision Due to Improper Service, Emphasizes Communication in Customs Proceedings

The Tribunal overturned the rejection of the appeal by the Commissioner (Appeals) based on a perceived delay in filing, as the appellant was not properly ... Service and Communication of Orders - Computation of Period of Limitation from Date of Knowledge - Effect of Change of Address Notice on Service - Remand for Decision on Merits after Setting Aside Time Bar DismissalService and Communication of Orders - Computation of Period of Limitation from Date of Knowledge - Effect of Change of Address Notice on Service - Whether the appeal was barred by limitation where the Order in Original was sent to the assessee's old address despite prior intimation of change of address, and if limitation must be computed from the date the appellant came to know of the order. - HELD THAT: - The appellant produced contemporaneous evidence that the Department was informed of a change of address (letter dated 03.07.2012, received 12.07.2012) and an internal note showing that verification of the new address was ordered. Despite this, the Order in Original dated 18.02.2013 was issued to the earlier address and there was no actual communication or service of the order upon the appellant. Relying on the statutory scheme requiring communication/service of decisions, the Tribunal held that where there is no actual service, the relevant date for computing limitation is the date on which the appellant actually came to know of the order. Applying that principle to the facts, the appellant discovered the order in 2019 and filed the appeal within sixty days from that date. Consequently, the Commissioner (Appeals)'s dismissal of the appeal as time barred could not be sustained.The rejection of the appeal on the ground of limitation is set aside and the appeal is remitted to the Commissioner (Appeals) for adjudication on merits.Final Conclusion: The Tribunal held that absence of actual service of the Order in Original (sent to the appellant's old address despite prior intimation) meant limitation runs from the date of actual knowledge; the time bar dismissal was set aside and the matter remanded to the Commissioner (Appeals) for fresh decision on merits. Issues:1. Allegation of wrong classification of imported goods and imposition of penalties.2. Appeal rejection by Commissioner (Appeals) on the ground of limitation.3. Delay in filing appeal due to non-receipt of Order-in-Original.Analysis:1. The appellant, a Custom House Agent, filed a Bill-of-Entry for imports made in 2009/2010 on behalf of a company. Subsequently, a Show Cause Notice was issued, alleging wrong classification of imported goods and penalties. The Original Authority rejected the classification, imposing penalties on both the importer and the appellant. The appeal to the Commissioner (Appeals) was rejected due to a perceived delay in filing.2. The appellant argued that they were unaware of the Order-in-Original as it was sent to their old address despite them notifying the Department of a change in address in 2012. They only became aware of the order in 2019 through an alert in the EDI system. The Commissioner (Appeals) dismissed the appeal as time-barred, citing the delay.3. The appellant provided evidence of informing the Department about the address change in 2012, supported by a note for verification of the new address. The Tribunal noted that as per Customs Act provisions, decisions/orders must be communicated to the concerned party. Since there was no actual service or communication of the order to the appellant, the date of their knowledge of the order should be considered for calculating the limitation period. Consequently, the appeal was deemed timely, and the rejection on the ground of time-bar was overturned.4. The Tribunal held that the rejection of the appeal based on time-bar could not be upheld. The matter was remanded to the Commissioner (Appeals) for a decision on the case's merits, emphasizing the importance of proper communication and service of orders to parties involved in customs proceedings.