2021 (8) TMI 704 - AT - Customs

Tribunal Upholds Duty Rate Based on Entry Date, Absolves Respondent from Refiling

The Tribunal dismissed the appeal, upholding the Commissioner (Appeals)'s decision to re-assess the Bills of Entry based on the Basic Customs Duty rate ... Determination of rate of duty - Relevant date for payment of Customs Duty - Delay in filing of BE due to error on ICEGATE portal - requirement to pay Basic Customs Duty applicable on 05.07.2019, which is the date on which the respondent submitted the Bills of Entry with the requisite data for generation of numbers for the four Bills of Entry or it should be 19/20.07.2019, on which date the three Bills of Entry numbers were generated by the ICEGATE portal? - Section 15 of Customs Act, 1962. HELD THAT:- The respondent had submitted all the four Bills of Entry with the relevant documents on 05.07.2019 before 5 PM and the respondent cannot be blamed if for three consignments, Bills of Entry numbers were not generated because of some fault with the ICEGATE portal of the appellant on which the respondent was required to enter the Electronic Integrated Declaration and the supporting documents. The rate of Basic Customs Duty as applicable on 05.07.2019 would, therefore, be applicable and not the Basic Customs Duty as applicable on 20.07.2019, on which date the respondent had resubmitted the Bills of Entry with documents in view of the instructions issued by the Department. There is, therefore, no error in the order passed by the Commissioner (Appeals) requiring the Department to re-assess the three Bills of Entry with respect to the rate of Basic Customs Duty applicable on 05.07.2019. The issue arising before the Supreme Court in UNION OF INDIA & OTHERS VERSUS M/S GS CHATHA RICE MILLS & ANOTHER [2020 (9) TMI 903 - SUPREME COURT] was not about non-generation of Bills of Entry numbers, which is the issue in the present case. This judgment would, therefore, not come to the aid of the respondent. Appeal dismissed. Issues Involved:1. Determination of the applicable rate of Basic Customs Duty for the Bills of Entry filed on 05.07.2019.2. The impact of technical glitches in the ICEGATE system on the processing of Bills of Entry.3. The relevance of the date of presentation of Bills of Entry under Section 15 of the Customs Act, 1962.4. The validity of the direction to re-file Bills of Entry due to non-generation of numbers.Issue-wise Detailed Analysis:1. Determination of the Applicable Rate of Basic Customs Duty:The primary issue was whether the Basic Customs Duty applicable on 05.07.2019 or the increased rate effective from 06.07.2019 should apply to the respondent's three Bills of Entry. The Tribunal concluded that the rate of duty applicable on 05.07.2019 should be applied, as the respondent had presented the Bills of Entry with all relevant documents on that date. The Tribunal upheld the Commissioner (Appeals)'s decision to re-assess the Bills of Entry based on the duty rate effective on 05.07.2019.2. Impact of Technical Glitches in the ICEGATE System:The respondent claimed that due to a technical glitch in the ICEGATE system, three Bills of Entry numbers were not generated on 05.07.2019. The Tribunal found that the non-generation of these numbers was due to a technical error at ICEGATE's end and budget activity after 5 PM on 05.07.2019. The Tribunal accepted the respondent's argument that they should not be financially prejudiced due to technical issues on the part of ICEGATE.3. Relevance of the Date of Presentation of Bills of Entry:The Tribunal emphasized the importance of the date of presentation of Bills of Entry under Section 15 of the Customs Act, 1962, which determines the applicable rate of duty. The Tribunal referred to the Madras High Court's judgment in Vijaya Industrial Products v. Union of India, which held that the presentation of a Bill of Entry in the prescribed form suffices to confer a right on the importer to have the tariff valuation and rate of duty as on the date of presentation. The Tribunal found that the respondent had presented the Bills of Entry with all supporting documents on 05.07.2019, and thus, the duty rate on that date should apply.4. Validity of the Direction to Re-file Bills of Entry:The Tribunal found that the direction to re-file the Bills of Entry was incorrect and caused financial prejudice to the respondent. The Tribunal noted that the respondent had submitted all necessary documents on 05.07.2019, and the failure to generate Bills of Entry numbers was due to ICEGATE's technical issues. Therefore, the respondent should not have been required to re-file the Bills of Entry and pay the increased duty rate applicable from 06.07.2019.Conclusion:The Tribunal dismissed the appeal filed by the Principal Commissioner of Customs, affirming the Commissioner (Appeals)'s order to re-assess the three Bills of Entry based on the Basic Customs Duty rate applicable on 05.07.2019. The Tribunal concluded that the respondent had presented the Bills of Entry with all requisite documents on 05.07.2019, and the failure to generate numbers for three Bills of Entry was due to technical issues on ICEGATE's part. The applicable duty rate should be as on the date of presentation, i.e., 05.07.2019.