2016 (9) TMI 1670 - HC - Customs

Customs authorities must complete export value assessment within two months after granting proper hearings under Section 143

Narbheram Vishram Versus Commissioner, Central Excise; Asst. Commissioner, Customs, Customs House And Superintendent of customs

The HC directed customs authorities to conduct proper final assessment of export transactions within a reasonable timeframe after finding violation of ... Seeking a direction to the opposite parties to proceed with the final assessment and complete the same within a reasonable period in respect of the transactions - no opportunity to the petitioners to participate in any hearing leading to any final assessment or determination of the export value for the purpose of arriving at the conclusive expert value and determination of the duty payable thereon - violation of principles of natural justice - HELD THAT:- It is clear from the documents appended to the writ application that in each of these transactions, bonds have been taken from the exporter (petitioners herein) and it is obvious that such bonds have been taken at the point of export, since, the exporting officer was satisfied that having regard to the circumstance of the case such thing cannot be done before such export or clearance, without detriment to that person (the term such thing obviously refers to the ultimate determination of duty on such exports) and even in transaction No. 12 as contend ed by the learned Standing Counsel a bond has been taken and such bond has been taken in terms of Section 143. There is no evidence on record to indicate that there has been any ultimate determination of the export value of the goods till date and the claim by the department that the determination has been done but admittedly without affording opportunity of hearing, as well as, opportunity of producing documents to the petitioner cannot stand on the law and is also obviously in non-compliance of the principles of Res Judicata as well as rules framed under the Customs Act (i.e. Customs Valuation (Determination of Value of Export Goods) Rules, 2007). The ends of justice would be best met, if the opposite parties are directed to appear before the Assessing Officer/appropriate officer on 17.10.2016 along with all necessary documents in support of their contentions, if any, on which date, the Assessing Officer/appropriate officer shall do well to fix up a date for oral hearing in the matter and determine the export value of the export goods in accordance with the Customs Act and Rules made thereunder within a further period of two months thereof - application allowed. Issues:1. Final assessment completion direction sought by the petitioner for transactions.2. Lack of opportunity for petitioners in assessment of transactions.3. Interpretation of Customs Act 1962, Section 143.4. Validity of self-declaration and bond in transaction No. 12.5. Compliance with Customs Valuation Rules in export value determination.6. Opportunity for petitioners in final assessment and duty determination.7. Compliance with principles of Res Judicata and Customs Act rules.Analysis:1. The writ application filed by a partnership firm sought a direction for the completion of final assessment within a reasonable period for transactions listed in Annexure-2.2. The Customs Department admitted lack of opportunity for the petitioners in transactions 1 to 11, leading to assessments without documentary evidence or participation from the petitioners.3. The discussion focused on transaction No. 12, where the self-declaration of the petitioners was accepted, and the Superintendent of Customs deemed no further determination necessary based on Section 143 of the Customs Act 1962.4. Petitioners argued that the mere acceptance of the bond by the Superintendent of Customs did not equate to the final assessment of duty payable, citing a relevant government circular.5. The petitioners contended that they were not given an opportunity to participate in any hearing for the final assessment or determination of export value in any of the 12 transactions.6. The Court analyzed the documents and Sections 14 & 143 of the Customs Act, concluding that no ultimate determination of export value had occurred, emphasizing the necessity of affording the petitioners the opportunity to present their case.7. Consequently, the Court directed the parties to appear before the Assessing Officer with necessary documents for a determination of export value within a specified period, emphasizing compliance with the Customs Act and Rules, and nullifying any uncommunicated assessments.