Bill of Entry can be re-assessed even though the goods were no longer under the charge of Customs authorities

Reiter India Pvt. Ltd. Vs. Commissioner of Customs (Import) [2014 (8) TMI 318- CESTAT Mumbai]

In the instant case, Reiter India Pvt. Ltd. (“the Appellant”) imported a consignment of Textile Machinery parts vide invoice no. 3506445/2000 dated May 10, 2011 valued at 997740.24 CHF vide Bill of Entry no. 3610581 dated May 25, 2011. The Appellant cleared the goods on payment of relevant Customs duties along with interest. Thereafter, the Appellant found that value of one item was shown as 4.04 CHF instead of 0.04 CHF. The Appellant contacted the supplier, who in turn informed the Appellant that they have charged wrong price for the said part due to typographical mistake. On receipt of the goods in factory and on receipt of original Bill of Entry, the Appellant availed Cenvat credit against the said consignment. However, after noticing the error in invoice value, the Appellant immediately reversed the Cenvat credit.

The Appellant paid excess duty of Rs. 1,11,46,682.70 due to error in the invoice for which, they made application before the Dy. Commissioner for reassessment of the Bill of Entry. The application was rejected on the ground that the goods were no longer under customs charge and no documentary evidence was available warranting amendment and reassessment of Bill of entry. The Adjudication order was confirmed by the Commissioner (Appeals). Accordingly, the Appellant filed an appeal.
­The Hon’ble Mumbai Tribunal observed that payment of excess duty by the Appellant was not in dispute as the price of the impugned item was 0.04 CHF which was invoiced wrongly by the supplier as 4.04 CHF. The purchase order and the invoice were available at the time of filing the Bill of entry. Therefore, the Hon’ble Tribunal held that as per the CBEC Manual, amendment in Bill of entry shall be allowed although goods have been given out of charge.

Accordingly, the order of the Commissioner (Appeals) was set aside.