Customs assessment cannot be reopened by excise authorities to deny proforma credit after valid classification is completed.

Customs classification and assessment, once completed by the competent customs authority, could not be reopened by the central excise authority for the purpose of denying proforma credit. The Tribunal applied the principle that one taxing authority cannot sit in appeal over or revise another competent authority's assessment without jurisdiction. As the imported goods had already been classified and assessed by Customs, the Assistant Collector could not reclassify them or disturb the assessment. The denial of proforma credit was therefore unsustainable, and the assessee was entitled to the benefit as assessed by Customs.

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Issues: Whether the Assistant Collector of Central Excise could question and reclassify imported goods already assessed by the Customs authorities, and consequently deny the respondent the benefit of proforma credit.

Analysis: The imported goods had already been classified and assessed by the Customs authorities, and the central excise authority could not reopen that assessment or alter the classification. The Tribunal applied the settled principle that one taxing authority cannot sit in appeal over or revise the assessment made by another competent authority in the absence of jurisdiction to do so. The eligibility for proforma credit or set-off followed the customs assessment as made, and the central excise authority's attempt to reclassify the goods was impermissible.

Conclusion: The Assistant Collector had no jurisdiction to question the customs classification and assessment, and the denial of proforma credit could not be sustained. The issue was decided in favour of the assessee.

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