Adjudicator must follow N/N.73/2018-Cus, provide hearing and reasoned order before finalizing provisional bill of entry assessments

CESTAT KOLKATA - AT set aside the impugned orders and remanded the matters for fresh finalization of the provisional assessments of the bills of entry. The Tribunal held the adjudicating authority must follow the procedure under N/N. 73/2018-Cus (N.T.) dated 14-08-2018, afford the appellant an opportunity of being heard, and pass a reasoned (speaking) order in accordance with principles of natural justice before concluding the assessments. Appeals disposed of by remand.

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The appeals raise whether, on finalization of provisional assessment of Bills of Entry, the procedure under Notification No. 73/2018-Cus (N.T.) dated 14-08-2018 was followed. The notification prescribes the "Manner of finalization of provisional assessment," including that "the provisional assessment shall be finalized as per the provisions of section 18 of the Act," adjustment of shortfalls from security, cancellation of the Bond and return of security where no dues remain, and that "Where the final assessment is contrary to the provisional assessment, the proper officer shall pass a speaking order following principles of natural justice." It also provides that if the final assessment confirms the provisional assessment, the officer shall ascertain "the acceptance of such finalization from the importer or the exporter on record and inform the importer or exporter in writing of the date of such finalization," and that provisional assessments presented electronically be finalised on the system. The tribunal found the adjudicating authority did not afford the appellant the opportunity of being heard and remanded the matter, directing finalization with a "speaking order" after giving the appellant hearing.

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