1985 (2) TMI 288 - AT - Customs

Summary

Issues:
1. Whether a reference to the High Court can be made under Section 130 of the Customs Act based on an order directing retransfer of papers to the Government.
2. Interpretation of Section 130 of the Customs Act regarding the scope of orders under Section 129B for making a reference.

Analysis:
1. The judgment deals with an application under Section 130 (1) of the Customs Act filed by the Collector of Customs, New Delhi, seeking a reference to the Hon'ble High Court of a question of law arising from an order of the Tribunal. The Tribunal had ordered retransfer of papers to the Government based on the penalty amount being less than Rs. 10,000, as per the provisions of Section 131B(2) of the Customs Act. The Collector contended that the Tribunal was not correct in ordering retransfer due to the redemption fine exceeding Rs. 10,000 despite the penalty being less. The Tribunal dismissed the application, stating that the order for retransfer did not fall under Section 129B of the Customs Act, which is a prerequisite for making a reference under Section 130.

2. The Respondent's advocate argued that an application for reference under Section 130 of the Customs Act can only be made if the order giving rise to the question of law had been passed under Section 129B. He emphasized that an order under Section 129B involves confirming, modifying, annulling the order appealed against, or referring the proceedings back to the original authority. Since the order in question directed retransfer of papers to the Government, it did not fall within the ambit of Section 129B. The Tribunal concurred with this interpretation, stating that the order for retransfer did not result in the disposal of the proceedings by way of confirmation, modification, annulment, or remand to the original authority, as required under Section 129B.

3. The Tribunal clarified that a reference under Section 130 of the Customs Act can only be made if the question of law arises from an order passed under Section 129B. In this case, the order directing retransfer did not meet the criteria of Section 129B as it did not confirm, modify, annul, or remand the proceedings. Therefore, the Tribunal held that the application for reference under Section 130 was not maintainable in relation to the order for retransfer of papers. Consequently, the application was dismissed, emphasizing the specific requirements under Section 129B for making a reference under Section 130 of the Customs Act.