Internal DFIA endorsement not appealable where it neither determines rights nor causes immediate prejudice

An internal endorsement on a DFIA, made only in the department's file and not communicated to the importer, was held not to be an appealable order under Section 128 of the Customs Act. Because the endorsement did not itself determine rights or create immediate prejudice, it caused no appealable adjudication. The importer's proper remedy, if aggrieved by any adverse view, was to challenge the assessment order passed at the time of bill of entry. The later DGFT correspondence also removed the condition relating to payment of CVD, leaving no subsisting grievance on that aspect.

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Issues: Whether an endorsement made on a DFIA, not communicated to the importer and not operating per se to its prejudice, was an appealable order under Section 128 of the Customs Act.

Analysis: The endorsement was made on the original DFIA in the department's file and was not communicated to the importer. The later correspondence from the DGFT also removed the condition regarding payment of CVD, leaving no subsisting apprehension on that score. The proper course for the importer, if any adverse view were taken at the time of assessment of the bill of entry, was to challenge the assessment order in appeal. An internal endorsement that does not itself determine rights or cause immediate prejudice does not constitute an appealable adjudication under Section 128.

Conclusion: The endorsement was not appealable, and the Commissioner (Appeals) ought not to have entertained the importer's appeal.

Ratio Decidendi: An internal endorsement that neither communicates an adverse decision nor itself determines liability is not an appealable order; the appropriate remedy lies against an adverse assessment order.

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