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Issues:
- Jurisdiction of Commissioner (Appeals) to decide on reimbursement of demurrage and detention charges under Customs Act, 1962. Analysis: The appeal before the Appellate Tribunal CESTAT, New Delhi involved a dispute regarding the liability of the Revenue to reimburse demurrage and detention charges paid by a company. The Revenue appealed against the Order-in-Appeal where the Commissioner (Appeals) had held the Revenue accountable for these charges. The Revenue argued that such charges are not covered by the provisions of the Customs Act, 1962, citing a previous Tribunal decision in the case of Sawhney Export House (P) Ltd. v C.C., Mumbai. The Tribunal in that case had ruled that Section 27 of the Customs Act does not address the refund of demurrage charges, leading to the rejection of the importer's appeal. In response, the Advocate for the Respondent referred to the Supreme Court judgment in the case of Shipping Corporation of India Ltd. v. C.L. Jain Woolen Mills, emphasizing that carriers/custodians have the right to recover demurrage charges, and innocent importers should not be liable to pay them. The Advocate also cited the decision in Navneet Kumar Didwania v. C.C., Calcutta (Fort) to support the argument. After considering the arguments from both sides, the Tribunal concluded that the Commissioner (Appeals) lacked jurisdiction to hear the appeal under Section 128 of the Customs Act regarding the reimbursement of demurrage and detention charges. Section 128 allows appeals against decisions or orders by Customs officers lower in rank than the Commissioner of Customs. Since the payment and reimbursement of such charges do not fall within the scope of the Customs Act, an order denying reimbursement by the Assistant Commissioner cannot be appealed before the Commissioner (Appeals). Therefore, the Tribunal set aside the Commissioner (Appeals) order, ruling in favor of the Revenue and allowing their appeal. In the operative part of the Order pronounced on 4-3-2005, the Tribunal clarified its decision, highlighting the lack of jurisdiction of the Commissioner (Appeals) in matters related to demurrage and detention charges reimbursement under the Customs Act, ultimately siding with the Revenue in this case.
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