Commissioner Vs Pelican Quartz Stone (CESTAT Delhi)
CESTAT Delhi held that re-assessment will come to an end once the goods are exported in case of Shipping Bills and once the officer gives an order clearing the goods for home consumption in case of imports. Thus, re-assessment after goods are exported are without any authority of law.
Facts- Show cause notice dated 27.04.2020 was issued by the Directorate General of Revenue Intelligence, wherein, it was proposed to reject the the declared classification of ‘Engineered Quartz Stone’ under Customs Tariff Item 68159990 in several Shipping Bills filed by the assessee and exported during 2017 and 2018 and to re-assess the Shipping Bills classifying it under CTI 68101990. It was also proposed to recover from the assessee an amount of Rs. 69,32,401/-said to have beeen wrongly availed and utilised using scrips under the Merchandise Export from India Scheme u/s. 28AAA of the Customs Act, 1962. The same was confirmed by the impugned order.
Conclusion- Held that after the goods are exported, the only options available to the Revenue to modify the assessment of the Shipping Bills are an appeal before Commissioner (Appeals) under section 128 or a Show Cause Notice under Section 28. Show Cause Notice under section 28 can be issued only to recover duties not levied not paid, short levied, short paid or erroneously refunded and not for any other purpose. The appeal under section 128 has no such restriction. The re-assessment of the Shipping Bills in this case is without any authority of law.
