TaxTMI 
TaxTMI 
2026 (3) TMI 479
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....ld not be fastened without identification of importer. Further, in order to fulfil the requirement of principles of natural justice, all the relied upon documents are to be made available to the noticees. Without rendering any opinion on the merits of the case, we set aside the impugned order and remand the case back to the original authority for fresh decision after giving adequate opportunity to the noticees to present their case. Since the consignments are lying with the Department, the authorities may take an early decision. 6. In the result, the appeal is allowed by way of remand. Miscellaneous Application also stands disposed of accordingly." (emphasis supplied) 2. The facts of the case are that the officers of the Directorate of Revenue Intelligence [DRI] received intelligence that some importers were purchasing complete LED TVs in the overseas market and then removing some parts such as Master cards, Power Supply units and RF cards and importing such LED TVs at low prices and were importing the remaining goods along with remote control, etc. separately in the name of others. After importing they were assembling them together to make the complete LED TVs and s....
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.... else. The relevant portion of this section reads as follows: "Section 28. Recovery of duties not levied or not paid or short-levied or short- paid or erroneously refunded. - (1) Where any duty has not been levied or not paid or short-levied or short-paid or erroneously refunded, or any interest payable has not been paid, part-paid or erroneously refunded, for any reason other than the reasons of collusion or any wilful mis-statement or suppression of facts,- (a) the proper officer shall, within two years from the relevant date, serve notice on the person chargeable with the duty or interest which has not been so levied or paid or which has been short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice; ***** (4) Where any duty has not been levied or not paid or has been short-levied or short-paid or erroneously refunded, or interest payable has not been paid, part-paid or erroneously refunded, by reason of,- (a) collusion; or (b) any wilful mis-statement; or (c) suppression of facts, by the importer ....
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....d, the proper officer issues an order permitting their clearance for home consumption under section 47 of the Act- a process commonly called 'customs out of charge'. Relevant portions of these sections are reproduced below: "Section 17. Assessment of duty. - (1) An importer entering any imported goods under section 46, or an exporter entering any export goods under section 50, shall, save as otherwise provided in section 85, self-assess the duty, if any, leviable on such goods. (2) The proper officer may verify the entries made under section 46 or section 50 and the self assessment of goods referred to in subsection (1) and for this purpose, examine or test any imported goods or export goods or such part thereof as may be necessary. ***** Section 46. Entry of goods on importation. - (1) The importer of any goods, other than goods intended for transit or transhipment, shall make entry thereof by presenting electronically on the customs automated system to the proper officer a bill of entry for home consumption or warehousing in such form and manner as may be prescribed: **** Section 47. Clearance of goods for ho....
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....rter' includes the owner of the goods only between the time of the import and the clearance for home consumption. The appellant, in this case, is such a buyer of goods which were already cleared for home consumption. 17. The case of the department is that the appellant had masterminded all the entire imports which had taken place through others and hence he was liable to pay duty. During the relevant period, there was no provision to charge someone who indirectly controls the import with duty treating such a person as the importer. The Act was amended from 31.3.2017 and the concept of beneficial owner was introduced by inserting Section 2(3A) and amending section 2(26) of the Act to include beneficial owners. These are reproduced below: "(3A) "beneficial owner" means any person on whose behalf the goods are being imported or exported or who exercises effective control over the goods being imported or exported;" 2(26)"importer", in relation to any goods at any time between their importation and the time when they are cleared for home consumption, includes [any owner, beneficial owner] [Substituted 'any owner' by Finance Act, 2017 (Act No. 7 of 2017), dat....
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....sion under the Customs Act to assess two or more Bills of Entry together. The only exception is the Project Imports which is a special option given to the importer to get all the goods imported under the project under a single heading 9801. 23. The SCN was issued under the mistaken belief that the LCD panels imported under some Bills of Entry by some importers and other parts imported under some other Bills of Entry by some other importers can be considered together when they were sold to the appellant after clearance and duty re-assessed treating all the these goods together. 24. The concern of the department appears to be that instead of importing complete LCD TVs, the panels are being imported separately and other parts are being imported separately by other importers and they are being assembled to form complete LCD TVs. This, we must point out, is nothing but tax planning. Tax planning is generally associated with direct tax planning but planning of Customs duties is also possible. 25. A general principle followed while deciding tariffs is to charge lowest rates of duty on the raw materials, medium rates of duty on intermediate products and highest rates of duty on fi....