Settled export classification cannot be reopened through fresh misclassification notices, requiring release of withheld export benefits.

Classification of exported scaffolding items under the specific tariff headings for nuts, bolts, washers, clamps and hand tools had been settled by binding decisions on materially identical notices. Those decisions recognised finality of accepted assessments, limitation on drawback recovery, and the need for Revenue authorities to follow binding precedent. The Gujarat HC material states that a further notice alleging misclassification could not reopen that settled classification, and that consequentially withheld drawback and the export promotional copy were to be released.

---

---

Issues: Whether the show-cause notice alleging misclassification of exported scaffolding items and consequential withholding of export benefits could survive when the classification issue had been conclusively settled in favour of classification under the specific tariff headings applicable to nuts, bolts, washers, clamps and hand tools.

Analysis: The exported goods had been classified under specific headings of the Customs Tariff Act, 1975, and that classification had been accepted by the proper officer. Earlier binding decisions on materially identical notices had settled the classification issue and had quashed such notices, including on grounds of finality of assessment, limitation for recovery of drawback, and impermissibility of disregarding binding precedent. The Revenue had not disputed that the present notice involved the same settled issue.

Conclusion: The show-cause notice was unsustainable and was quashed; any drawback withheld because of that notice and the export promotional copy were required to be released. The decision is in favour of the assessee.

Ratio Decidendi: Revenue authorities cannot reopen a settled classification accepted at assessment through a show-cause notice contrary to binding decisions on identical facts and legal issues.

---