Custom
TRT-2025-
New Delhi High Court
Date:-14-12-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 14 December 2023
Parties: M/s Om Gems And Jewellery Vs Principal Commissioner, Directorate of International Customs, Free Trade Agreements (FTA) Cell New Delhi & Ors
Facts –
- The Petitioner, M/s Om Gems And Jewellery, imported some with duly documented and was supported by the invoice, packing list and other documents issued by the supplier as well as the COO Certificate as contemplated under the 2009 Rules. The respondent provisionally assessed the articles. On the appeal filed the imported goods were permitted to release on payment of 20% of the duty along with a Bond.
- However the respondent forwarded COO certificate for verification on 17 September 2020 with DRI. Thus the respondent stated that the provisional assessment proceedings would be finalized only upon receipt of the verification report from the DRI. However no further steps were taken by the respondents for finalizing the pending assessment.Despite petitioner's appeal and Commissioner's order, respondents failed to finalize pending assessment.
Issue –
- Whether the petitioner is entiled to refund of amount along with interest?
Order –
- The Divisional Bench of Hon’ble High Court observed that although the imported goods were subjected to provisional assessment in January, 2016 those assessment proceedings had not been concluded till the time the writ petition was finally heard. It is thus manifest that the respondents have failed to conclude the assessment proceedings despite more than seven years having elapsed from the time the decision to follow the route placed in terms of Section 18 of the Act was taken.
- It is evident that the DRI had forwarded the verification request to the Competent Authority in Indonesia on 20 October 2015 and the issuing authorities had reverted back affirming the COO Certificates which had been submitted by the petitioner and that such information had been duly shared with field formations vide letter dated 17 March 2016. Thus, the petitioner is not only entitled to the refund of the amounts represented by the BG which was submitted, the respondents are also liable to be saddled with interest for having retained those funds without any justifiable cause.
- It also becomes pertinent to note that the provisional assessment itself was initiated not on an allegation of any undervaluation or wrongful declaration of the value of goods, the same was founded solely on the opinion formed by the respondents that the COO Certificates merited verification. In view of the above, the indolence exhibited by the respondents is rendered wholly arbitrary.
- The respondents are directed to release the BG and any other monies retained along with interest @ 6% per annum on that refund which shall commence from 17 March 2016 when the DRI shared the verification reports till such time as the monies are ultimately repaid.
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