2006 (3) TMI 357 - AT - Customs

Appeal to Appellate Tribunal - On review of order of Commissioner - Stay - Hearing of stay application

Summary

Issues: Authorization for appeal by Commissioner of Customs (Import) based on an order passed by another Commissioner; Jurisdiction of Commissioner to review and authorize appeal; Validity of appeals filed based on unauthorized authorization.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Mumbai dealt with the issue of authorization for appeal by the Commissioner of Customs (Import) based on an order passed by another Commissioner. The Tribunal noted that the impugned order was passed by the Commissioner of Customs (I) and an authorization letter was issued by the Commissioner of Customs (Import) for filing an appeal. However, the Tribunal emphasized the provisions of Section 129A of the Customs Act, 1962, which stipulate that orders passed by a Commissioner are subject to review by the Board, not by another Commissioner. The Tribunal concluded that the Commissioner did not have the jurisdiction to review the order of another Commissioner and authorize the Deputy Commissioner to file an appeal. Therefore, the Tribunal held that the authorization letter issued by the Commissioner of Customs was without jurisdiction. Consequently, the appeals filed by the Revenue based on the unauthorized authorization were deemed not maintainable and were dismissed by the Tribunal.

In this case, the Tribunal rejected a stay petition filed by the Revenue and proceeded to consider the appeals themselves. The appeals were filed on the basis of an authorization given by the Commissioner of Customs (Import) against an order passed by the Commissioner of Customs (I). The Tribunal highlighted the specific language used in the authorization letter, which indicated the Commissioner's opinion that the order-in-original was neither legal nor proper. Despite this assertion, the Tribunal found that the Commissioner lacked the authority to issue such an authorization for appeal. By invoking the powers vested under sub-section (4) of Section 129D of the Customs Act, 1962, the Commissioner's authorization was deemed invalid due to the lack of jurisdiction to review and authorize an appeal against the order of another Commissioner. Consequently, the Tribunal dismissed the appeals filed by the Revenue based on the unauthorized authorization, emphasizing the importance of adhering to the prescribed legal procedures and jurisdictions outlined in the Customs Act.

Overall, the judgment underscores the significance of adhering to the statutory provisions and legal framework established under the Customs Act, 1962. It elucidates the limitations on the authority of Commissioners to review and authorize appeals, emphasizing the need for adherence to the prescribed procedures to maintain the integrity and legality of the appeals process. The Tribunal's decision to dismiss the appeals based on the unauthorized authorization serves as a reminder of the importance of upholding the principles of jurisdiction and due process in the realm of customs law.