2009 (9) TMI 812 - AT - Customs

Summary

Issues:
1. Appeal against intradepartmental correspondence as an appealable order.
2. Entitlement to exemption from payment of CVD on goods imported under DFIAs.
3. Appellate Commissioner's jurisdiction over appeals against intradepartmental notings.

Analysis:
1. The appeal was filed by the department challenging the Commissioner (Appeals) order, which allowed an appeal filed by the respondent against intradepartmental correspondence. The appellant argued against treating intradepartmental correspondence as appealable orders. The noting by an Appraising Officer was central to the case, where a party filed an appeal based on it, leading to the deletion of CVD payment endorsements from DFIAs. The appellant contended that appeals could only be filed against adverse decisions of the Assistant Commissioner of Customs, which was not the case here. The respondent, however, justified their entitlement to relief granted by the Commissioner (Appeals) and highlighted a recent amendment beneficial to them under the Finance Act, 2009.

2. The Tribunal, after considering the submissions, agreed that appellate Commissioners should not entertain appeals against intradepartmental notings or correspondence. The document in question was merely a noting by an Appraising Officer, not an order-in-original, recommending against the deletion of "CVD endorsement" from DFIAs. It was emphasized that the Assistant Commissioner of Customs should have taken a decision on this recommendation, which could then be appealed under Section 128 of the Customs Act. The Tribunal criticized the practice of treating such notings as appeals and deemed it illegal and unjudicial, ultimately allowing the present appeal on these grounds.

3. The Tribunal also addressed the recurring nature of the issue regarding the respondent's entitlement to exemption from CVD payment on imported goods under DFIAs. Noting the existing endorsement on each DFIA requiring payment of additional duty, the Tribunal urged the original authority to promptly consider the party's request for deletion of such endorsements in the interest of justice. It was emphasized that the Assistant Commissioner of Customs at Nhava Sheva should act promptly to address this recurring issue for the ends of justice. The stay application was disposed of, and the Tribunal highlighted the importance of resolving the substantive issue promptly for justice.