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Dated: 16.04.2025

CESTAT Mumbai Affirmed that Section 149 read with Section 154 empowers corrections of self-assessment errors without needing an appeal

In a significant ruling that clarifies the scope of Section 149 of the Customs Act, 1962, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai Bench allowed the appeal of M/s Pacific Cyber Technology Pvt. Ltd., reinstating the re-assessment and refund order of customs duty erroneously paid due to clerical error.

Background:

• The importer filed two Bills of Entry (BoE) for the same invoice due to a clerical error:
  • BoE No. 5936140 dated 04.12.2019 (correct)
  • BoE No. 5793005 dated 22.11.2019 (inadvertent duplicate)
• Duty of ₹14,72,009 was paid mistakenly against the incorrect BoE, whereas actual duty payable was ₹4,41,603.
• The importer sought amendment under Section 149 and re-assessment of BoE No. 5793005.
• The Assistant Commissioner re-assessed the BoE and refunded ₹10,30,406 via order dated 05.03.2020.
• However, the Commissioner (Appeals), on Revenue’s appeal, set aside both re-assessment and refund orders, citing violation of Section 149.

Revenue’s Argument:

• Claimed that amendment under Section 149 post-clearance was not valid.
• Asserted that re-assessment should have been pursued through appeal under Section 128.
• Cited the Supreme Court’s ITC Ltd. case (2019) to argue that refund claims require prior modification of assessment.

Importer’s Contention:

• The mistake was clerical, and correction sought through existing documentary evidence.
• Relied on Bombay High Court’s ruling in Dimension Data India Pvt. Ltd., which held that Section 149 permits post-clearance amendment when evidence exists.

CESTAT Mumbai’s Analysis:

• Distinguished the case from ITC Ltd. by clarifying that Section 149 is independent of appeal mechanism under Section 128.
• Highlighted that the amendment was sought based on documents that existed at the time of clearance.
• Noted that the Delhi High Court’s ruling in Terra Films was inapplicable as it dealt with scheme conversion, not clerical error.
• Affirmed that Section 149 read with Section 154 empowers corrections of self-assessment errors without needing an appeal.

Final Verdict:

• Set aside the Commissioner (Appeals)’ order dated 27.10.2021.
• Reinstated the re-assessment order dated 05.02.2020 and the refund order dated 05.03.2020.
• Allowed the appeal in full with consequential relief.

Significance:

• Reaffirms that clerical errors in BoE can be rectified under Section 149 even post-clearance.
• Establishes that refund can be processed without appeal if re-assessment is done through valid documentary correction.
• Clarifies the distinction between amendment and reassessment via appellate remedy, offering operational ease to importers.

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Source: CESTAT Mumbai

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