2006 (2) TMI 423 - AT - Customs

Summary

Issues:
1. Review power of the Collector of Customs.
2. Validity of the impugned order.
3. Interpretation of statutory powers.
4. Consideration of relevant judgments.

Issue 1: Review power of the Collector of Customs
The appeal involved a challenge against an order passed by the Collector of Customs, which was reviewed by the Collector within 15 days after considering an additional license produced by the party. The Collector's initial order was not challenged by the party, and the review was based on the new license. The Collector allowed clearance based on a license for a different commodity, which raised questions about the legality of the review process.

Issue 2: Validity of the impugned order
The department contended that the Collector did not have the power to review the initial order, and the Tribunal also clarified that it lacked review powers under the Customs Act. The Collector's action in reviewing the order based on a different license was deemed illegal, leading to the setting aside of the impugned order and allowing the department's appeal.

Issue 3: Interpretation of statutory powers
The party argued that the Collector had the inherent power to rectify his mistakes, citing a Supreme Court judgment. However, the Tribunal emphasized that the Collector's review was not valid, and even the Tribunal itself did not possess review powers under the Customs Act. The legality of the Collector's actions was questioned based on the specifics of the case and the relevant statutory provisions.

Issue 4: Consideration of relevant judgments
The arguments presented by both sides referenced various judgments, including a Supreme Court case and a Madras High Court judgment. The party sought to rely on the Supreme Court's observations regarding statutory powers, while the department highlighted the specifics of the case and the lack of review powers under the Customs Act. The Tribunal carefully considered these arguments and precedents before making its decision to set aside the impugned order and allow the department's appeal.