2002 (5) TMI 819 - AT - Customs

Summary

Issues:
1. Liability for payment of interest on unpaid amounts by the custodian appointed by the Commissioner of Customs.
2. Jurisdiction of the Tribunal to adjudicate on orders passed by the Commissioner under the Customs Act, 1962.

Issue 1: Liability for payment of interest on unpaid amounts:
The appeals involved a common appellant, the Diamond & Gem Development Corporation, Surat, appointed as a custodian by the Commissioner of Customs. The appellant failed to pay amounts within the specified time resulting in demand notices for interest. The Commissioner allowed payment in instalments with 20% interest, which the appellant contested. The appellant argued that the custodian's appointment and related matters fall under the Customs Act and are appealable to the Tribunal. However, the Tribunal rejected this argument, stating that the Act does not provide for the recovery of sums from a custodian by the Commissioner or subordinate officers. The charges in question were for customs staff salaries, not custodian fees, and were not connected to the custodian's duties under the Act.

Issue 2: Jurisdiction of the Tribunal:
During the initial stay application, it was observed that the Commissioner's orders may not be appealable to the Tribunal under the Customs Act, 1962. The appellant's representative argued that the custodian's appointment and related matters are subject to adjudication under the Act. However, the Tribunal disagreed, emphasizing that the Act does not empower the recovery of sums from a custodian by the Commissioner or subordinate officers. The Tribunal concluded that the Commissioner's order seeking charges for customs officers' services was not an adjudicatory decision under the Act, and the Tribunal lacked jurisdiction to hear the appeals. Additionally, the Tribunal highlighted that the Customs Regulations did not provide for appeals to the Tribunal in such cases, distinguishing them from other regulations that allow for appeals or representations to higher authorities.

In summary, the judgment addressed the liability of a custodian for interest on unpaid amounts and the Tribunal's jurisdiction to adjudicate on orders passed by the Commissioner under the Customs Act, 1962. The Tribunal ruled that the charges in question were not custodian fees but for customs officers' services, and the Commissioner's order was not an adjudicatory decision under the Act. Consequently, the Tribunal held that it lacked jurisdiction to hear the appeals and ordered their return to the appellant.