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of <h1>CESTAT Mumbai rules advance rulings under section 28I binding on customs administration until properly rescinded or distinguished</h1> <h3>Excellent Betelnut Products P Ltd, Satyendra Goel and Jigar Seth Versus Commissioner of Customs, Nagpur</h3> Excellent Betelnut Products P Ltd, Satyendra Goel and Jigar Seth Versus Commissioner of Customs, Nagpur - TMI Issues Involved:1. Scope for initiating proceedings to vary rate of duty in disregard of ruling u/s 28I of Customs Act, 1962.2. Conformity of adjudication order revising classification with General Rules for Interpretation of the Import Tariff and judicial decisions.3. Validity of varying the value not arising from rule 3(4) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.Summary:1. Scope for Initiating Proceedings to Vary Rate of Duty in Disregard of Ruling u/s 28I of Customs Act, 1962:The primary issue was whether the Commissioner of Customs could disregard an advance ruling issued u/s 28I of Customs Act, 1962. The Tribunal noted that the ruling on classification of 'API supari' was binding unless the law or facts changed. The Commissioner of Customs was found to lack competence to rescind such rulings. The Tribunal emphasized that the ruling subsists unless distinguished under section 28J(2) or rescinded under section 28K of Customs Act, 1962. The Tribunal concluded that the Commissioner of Customs had no authority to invalidate the ruling, and the proceedings lacked foundation as long as the advance ruling existed.2. Conformity of Adjudication Order Revising Classification with General Rules for Interpretation of the Import Tariff and Judicial Decisions:The Tribunal found that the adjudicating authority did not adhere to the General Rules for Interpretation of the Import Tariff appended to Customs Tariff Act, 1975. The Commissioner of Customs failed to provide a clear and legally valid reason for reclassifying 'API supari' under tariff item 0802 8010 instead of 2106 9030. The Tribunal noted that the decision in re ST Enterprises did not apply as the facts were different, and the ruling in re Excellent Betelnut Products Pvt Ltd was binding on the Commissioner. The Tribunal emphasized that the onus of proof for reclassification lay with the Revenue, which was not discharged.3. Validity of Varying the Value Not Arising from Rule 3(4) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007:The Tribunal held that the varying of value was only consequential to the revision of classification and had significance only for computation of duty. The adjudicating authority's approach to reject the declared value without following the prescribed rules was found to be flawed. The Tribunal noted that the Commissioner of Customs did not comply with the scheme set out in section 14 of Customs Act, 1962 and the Customs Valuation Rules, 2007, thereby invalidating the revised valuation.Conclusion:The Tribunal set aside the impugned order, holding that the adjudicating authority overstepped its jurisdiction by disregarding the binding advance ruling and failing to adhere to the legal framework for classification and valuation. The appeals were allowed, and the impugned order was declared flawed and invalid.
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