OBJECTIVE Customs duty is an indirect tax, which is a tax on the goods and not a tax on the person having or owning the goods.In this webinar, we shall know when an assessment can be made and when shall an appeal be made before a commissioner, High Court and Supreme Court.

1. Assessment and Appeals under
Customs
CA Divakar Vijayasarathy

2. Credits and Acknowledgement
Harish Kumar
CA Jugal Narendra Gala

3. Presentation Schema
Introduction
Assessment of
Goods – Sec 17
Provisional
Assessment of
Duty – Sec 18
Interest
Customs
(Finalisation of
Provisional
Assessment)
Regulations, 2018
Appeals to
Commissioner(App
eals) – Sec 128
Procedure in
Appeal – Sec 128A
Appeals to
Appellate Tribunal
– Sec 129A
Orders of
Appellate Tribunal
– Sec 129B
Deposit of Duty
before Filing
Appeal - Sec 129E
Appeal to High
Court – Sec 130
Application to High
Court – Sec 130A
Decision of High
Court – Sec 130D
Appeal to Supreme
Court – Sec 130E
Hearing before
Supreme Court –
Sec 130F

4. Introduction
The imported goods before clearance for home consumption or for warehousing are
required to comply with prescribed Customs clearance formalities.
This includes presentation of a Bill of Entry containing details such as description of
goods, value, quantity, exemption notification, Customs Tariff Heading, etc.
The Bill of Entry is subject to verification by the Proper Officer of Customs (under self-
assessment scheme) and may be reassessed if declarations are found to be incorrect
Like any other taxation statute, the Customs Act contains detailed provisions for judicial
review, resolution of disputes, appeals, review, etc.

5. Assessment of Goods – Sec 17
An importer or exporter has to self-assess the duty leviable on goods
The Proper Officer may verify or examine the imported or exported goods and the self-assessment done
The Proper Officer may require the importer, exporter or any other person to produce any document or
information
The selection of cases for verification shall primarily be on the basis of risk evaluation
Upon examination or testing of goods, the Proper Officer finds the self-assessment is not done correctly, he
may re-assess the duty leviable on such goods
Where the re-assessment is contrary to the self-assessment, the importer or exporter shall confirm his acceptance
of the said re-assessment in writing or otherwise the Proper Officer shall pass a speaking order on the re-
assessment, within 15 days from the date of re-assessment of the bill of entry or the shipping bill

6. Provisional Assessment

7. Provisional Assessment of Duty – Sec 18
Situations where provisional assessment can arise
Where the importer or exporter is unable to make self-assessment and makes a
request in writing to the Proper Officer for assessment
Where the Proper Officer deems it to subject any imported goods or export goods to
any chemical or other test
Where the importer or exporter has produced all the necessary documents and
furnished full information but the Proper Officer deems it necessary to make further
enquiry
Where necessary documents have not been produced or information has not been
furnished
However, the Proper Officer may direct to furnish such security as he deems fit for the payment of the deficiency
between the duty as may be finally assessed or re-assessed and the duty provisionally assessed

8. Upon Final Assessment or Re-assessment
When the duty is finally assessed or re-assessed by the Proper Officer, then
Goods cleared for home consumption
or exportation
Warehoused goods
the importer or the exporter of the goods shall pay the
deficiency or be entitled to a refund
if the amount so paid falls short of, or is in excess of the
duty finally assessed or re-assessed,
The amount paid shall be adjusted against the duty finally
assessed or re- assessed, and The Proper Officer may, where the duty
finally assessed or re-assessed, is in excess
of the duty provisionally assessed, require
the importer to execute a bond, binding
himself in a sum equal to twice the amount
of the excess duty

9. Interest
The importer or exporter shall be liable to interest, on any amount payable to Central Government (“CG”)
consequent to the final assessment order or re-assessment order, at the rate between 10% and 36% p.a. as
determined by CG, calculated from the first day of the month in which the duty is provisionally assessed till
the date of payment
Interest payable by importer or exporter
Interest receivable by importer or exporter
If any refundable amount is not refunded within 3 months from the date of
assessment of duty finally or re-assessment of duty, interest on such unrefunded
amount shall be paid at the rate between 5% and 30% p.a. fixed by the CG till the
date of refund of such amount

10. Customs (Finalisation of Provisional
Assessment) Regulations, 2018

11. Time-limit and Manner for Submission of
Documents or Information
The Proper Officer shall within 15 days from the date of order of provisional assessment, inform the
importer or the exporter, in writing, the required information or documents
The importer or the exporter shall provide the documents or information within 1 month from the
date of such order of provisional assessment or the date of such requisition by the Proper Officer
In case of failure to provide the required documents or information, the Proper Officer may further
extend a period not more than 3 months on his own or at the request of the importer of exporter
(after recording the reasons for failure to submit the details)
In case of failure to submit the details with the Proper Officer, the Additional Commissioner of Joint
Commissioner of Customs, may further extend the period by another 3 months
If the aforesaid time limits don’t suffice, the Commissioner of Customs, may extend the time period further
as deemed fit

12. Time-limit for Finalisation of Provisional
Assessment
The Proper Officer will finalise the provisional assessment within 2 months of receipt of:
an intimation from the importer or the exporter or his
authorised representative or Customs Broker
a chemical or other test report, where the provisional
assessment was ordered for that reason
an enquiry or investigation or verification report, where
the provisional assessment was ordered for that reason

13. No Details Furnished
Where the documents or information required to be furnished by the importer or exporter, are not
made available or made partly available and no further extension of time has been allowed
the Proper Officer shall proceed to finalise the provisional assessment within 2 months of the
expiry of the time allowed for submission of the said documents or information
The Commissioner of Customs concerned may allow, for reasons to be recorded in writing, a further
time period of 3 months in case the Proper Officer is not able to finalise the provisional assessment
within the period of 2 months

14. Manner of Finalisation of Provisional Assessment
The provisional assessment will be finalised as per the provisions of Sec 18 of the Act
However, if the amount so paid at the time of provisional assessment or after adjustment falls short and the
importer or the exporter has not paid the deficiency, the shortfall will be adjusted from the security
obtained
However, if the amount so adjusted or paid falls short of the duty finally assessed or re-assessed, the
importer or exporter of the goods would pay the shortfall
The Bond executed at the time of provisional assessment with security, if any, will be cancelled after
finalisation of provisional assessment and the security shall also be returned, if there are no pending dues
Where the final assessment confirms the provisional assessment, the Proper Officer will finalise the same
after ascertaining the acceptance of such finalisation from the importer or the exporter on record

15. Appeals

16. Appeals to Commissioner(Appeals) – Sec 128
Any person aggrieved by any decision or order passed under Customs Act by an officer of customs lower in
rank than a Principal Commissioner or Commissioner of Customs may appeal within 60 days
Commissioner(Appeals) may extend for a further 30 days, if he is satisfied that the the appellant was
prevented by sufficient cause from presenting the appeal
The Commissioner (Appeals) may, if sufficient cause is shown, adjourn the hearing of the appeal for
reasons to be recorded in writing (not more than 3 times)
Appeals shall be submitted in the Form No. C.A. 1

17. Procedure in Appeal – Sec 128A
• The Commissioner (Appeals) shall give an opportunity to the appellant to be heard if he so desires
• The Commissioner (Appeals) may, at the hearing of an appeal, allow the appellant to go for any ground
of appeal even though not specified in the grounds of appeal
The Commissioner (Appeals) shall, after making such further inquiry as may be necessary, pass such order, as
he thinks just and proper:
confirming, modifying or annulling the decision or order appealed against
referring the matter back to the adjudicating authority with directions for fresh
adjudication or decision, as the case may be, in the following cases, namely:
where an order or decision has been passed without following the
principles of natural justice
where no order or decision has been passed after re-assessment
where an order of refund has been issued by crediting the amount to Fund
without recording any finding on the evidence produced by the applicant

18. Order by Commissioner (Appeals)
The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the
points and reasons for determination of the decision
The Commissioner (Appeals) shall, hear and decide every appeal within a period of 6 months from
the date on which it is filed
On the disposal of the appeal, the Commissioner (Appeals) shall communicate the order passed by him
to the appellant, the adjudicating authority, the Principal Chief Commissioner or Chief Commissioner of
Customs and the Principal Commissioner or Commissioner of Customs

19. Appeals to Appellate Tribunal – Sec 129A
Any person aggrieved by any of the following orders may appeal to the Appellate
Tribunal -
a decision or order passed by the Principal Commissioner or Commissioner of Customs as an
adjudicating authority
an order passed by the Commissioner (Appeals)
an order passed by the Board or the Appellate Commissioner of Customs, as it stood
immediately before the appointed day (day on which provisions comes to effect)
an order passed by the Board or the Principal Commissioner or Commissioner of Customs,
as it stood immediately before the appointed day
The Committee of Commissioners of Customs may, if it is of opinion that an order passed by the
Principal Commissioner or Commissioner of Customs is not legal or proper, direct the Proper
Officer to appeal on its behalf to the Appellate Tribunal against such order
No appeal shall lie before the Tribunal in case of baggage goods, goods loaded for import to
India but not unloaded in India and cases of drawback

20. Manner of Appeal
Every appeal shall be filed within 3 months from the date on which the order sought to be appealed against is
communicated to the Principal Commissioner or Commissioner of Customs, or the other party preferring the appeal
On receipt of notice that an appeal has been preferred under the section, the party against whom the appeal has
been preferred may, file, within 45 days of the receipt of the notice, a memorandum of cross objections
An appeal to the Appellate Tribunal shall be in Form No. C.A.-3 and accompany fee of
Rs. 1,000, where the amount of duty and interest demanded and penalty levied is Rs. 5 lakhs or less
Rs. 5,000, where the amount of duty and interest demanded and penalty levied is more than Rs. 5
lakhs but not exceeding Rs. 50 lakhs
Rs. 10,000, where the amount of duty and interest demanded and penalty levied is more than Rs. 50
lakhs rupees

21. Orders of Appellate Tribunal – Sec 129B
The Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass
such orders thereon as it thinks fit
The Appellate Tribunal may, at any time within 6 months from the date of the order, with a view to
rectifying any mistake apparent from the record, amend any order passed by it
The Appellate Tribunal shall hear and decide every appeal within a period of 3 years from the date
on which such appeal is filed
The Appellate Tribunal shall send a copy of every order passed to the Principal Commissioner of
Customs or Commissioner of Customs and the other party to the appeal

22. Deposit of Duty before Filing Appeal – Sec 129E
The Appellate Tribunal or the Commissioner (Appeals), as the case may be, shall not entertain any appeal:
unless the appellant has deposited 7.5% of the duty in pursuance of a decision or an
order passed by an officer of customs lower in rank than the Principal Commissioner of
Customs or Commissioner of Customs
against the decision or order of passed by the Principal Commissioner of Customs or
Commissioner of Customs, unless the appellant has deposited 7.5% of the duty
against the decision or order passed by the Board or the Appellate Commissioner of
Customs under Sec 129A, unless the appellant has deposited 10% of the duty
Interest on Delayed Refund of Amount Deposited – Sec 129EE
Interest shall be paid to the appellant between 5% and 36% p.a as is for the time being fixed by the CG
from the date of payment of the amount till, the date of refund of such amount

23. Appeal to High Court – Sec 130
An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal, if the
High Court is satisfied that the case involves a substantial question of law
Any party aggrieved by any order passed by the Appellate Tribunal may file an appeal to the High Court
and such appeal shall be -
filed within 180 days* from the date on which the order appealed against is received by
the Principal Commissioner of Customs or Commissioner of Customs or the other party
accompanied by a fee of Rs. 200 where such appeal is filed by the importer or exporter
in the form of a memorandum of appeal precisely stating therein the substantial question
of law involved
*The High Court may admit an appeal after the expiry of 180 days if it is satisfied that there was
sufficient cause for not filing the same within that period
The High Court shall decide the question of law so formulated and deliver such judgment thereon
containing the grounds on which such decision is founded

24. Application to High Court – Sec 130A
The Principal Commissioner of or Commissioner of Customs or the other party may, within 180 days of the date
upon which he is served with notice of an order, by application in the Form No. C.A.-6, and fee of Rs. 200 in case
application made by other party
Memorandum of Cross objection may be made in Form C.A.-7 within 45 days of the receipt of the notice by
the person against whom such application has been made
However, High Court may admit an application or permit the filing of a memorandum of cross-objections
after the expiry of 45 days, if it is satisfied that there was sufficient cause for not filing the same within that
period
The High Court can direct the Appellate Tribunal to refer the question of law raised in the application and it
shall, within 120 days of the receipt of such direction, draw up a statement of the case and refer it to the High
Court
If the High Court is not satisfied that the statements in a case referred to it are sufficient to enable it to determine the
questions raised thereby, the Court may refer the case back to the Appellate Tribunal for the purpose of making such
additions thereto or alterations therein as it may direct in that behalf

25. Decision of High Court – Sec 130D
-The High Court hearing any case shall decide the questions of law raised therein, and
-shall deliver its judgment thereon containing the grounds on which such decision is founded and
-a copy of the judgment shall be sent under the seal of the Court and the signature of the Registrar to the
Appellate Tribunal which shall pass such orders as are necessary to dispose of the case in conformity with such
judgment
Where the High Court delivers a judgment in an appeal filed before it under Sec 130, effect shall be given to the
order passed on the appeal by the Proper Officer on the basis of a certified copy of the judgment.
The costs of any reference to the High Court or an appeal to the High Court shall be at the discretion of the Court

26. Appeal to Supreme Court – Sec 130E
An appeal shall lie to the Supreme Court from any judgment of the High Court delivered -
in an appeal made under Sec 130
on a reference made under Sec 130A
in any case which the High Court certifies to be a fit one for appeal to the Supreme Court

27. Hearing before Supreme Court – Sec 130F
The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the Supreme Court shall
apply in the case of appeals under Sec 130E
The costs of the appeal shall be at the discretion of the Supreme Court
Where the judgment of the High Court is reversed by the Supreme Court, effect shall be given to the order of
the Supreme Court in the manner provided in section 130D

28. Thank You!
Scan the QR Code to Join our
Research Group on WhatsApp
Scan the QR Code to explore more
Research from our Website
DVS Advisors LLP
India-Singapore-London-Dubai-Malaysia-Africa
www.dvsca.com
Copyrights © 2020 DVS Advisors LLP