Customs tariff notification cannot reopen a completed assessment when the revised rate was unavailable at clearance.

An enhanced customs tariff value could not be applied to an import that had already been assessed, duty-paid and cleared on the same day, because the revised notification was not operative or available to the importer at the time of assessment. On that basis, differential duty could not be demanded against the cleared goods, and the consequential interest and penalties also failed. The reasoning further noted that the demand was raised much later than the assessment, reinforcing the objection on limitation. The impugned order was therefore set aside, and the assessee succeeded.

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Issues: (i) Whether the amended customs notification enhancing the tariff value could be applied to a Bill of Entry that had already been assessed, duty-paid and cleared on the same day before the amendment was available to the importer. (ii) Whether the demand of differential duty and consequential penalties could be sustained, including on limitation.

Issue (i): Whether the amended customs notification enhancing the tariff value could be applied to a Bill of Entry that had already been assessed, duty-paid and cleared on the same day before the amendment was available to the importer.

Analysis: The assessment was completed on 31.05.2013 and out-of-charge was granted on the same day. The revised tariff value under the later notification was not available to the importer at the time of assessment. The governing principle applied was that a notification affecting duty liability must be operative and enforceable at the relevant time, and mere later publication or availability cannot retrospectively alter an assessment already completed. On these facts, the enhanced tariff value could not be fastened to the cleared goods.

Conclusion: The issue is decided in favour of the assessee; the amended notification did not apply to the already-assessed import.

Issue (ii): Whether the demand of differential duty and consequential penalties could be sustained, including on limitation.

Analysis: Since the duty was correctly paid on the basis of the notification in force and available at the time of assessment, the foundation for demanding differential duty failed. The order also proceeded on a date much after the assessment, and the delay in raising the demand further weakened the case for sustaining the impugned demand and penalties. In the circumstances, the impugned order could not survive either on merits or on limitation.

Conclusion: The demand, interest and penalties are unsustainable and the issue is decided in favour of the assessee.

Final Conclusion: The impugned order was set aside and the appeal succeeded because the enhanced notification could not be applied after assessment and the demand was not otherwise sustainable.

Ratio Decidendi: A customs notification enhancing duty liability cannot be enforced against goods already assessed and cleared when the notification was not available at the time of assessment and had not become operative for that transaction.

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