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Issues Involved:
1. Territorial jurisdiction of the High Court to entertain the application under Section 130A of the Customs Act. 2. Maintainability of the application under Section 130A of the Customs Act before the High Court. Issue-wise Detailed Analysis: Issue A: Territorial Jurisdiction 1. Arguments Presented: - The respondent's counsel argued that the High Court in whose jurisdiction the original adjudicating authority is located (Trichy) has jurisdiction. The application should have been made to the Madras High Court, relying on the Delhi High Court's judgments in *Suraj Woolen Mills* and *Commissioner of C. Ex., Delhi-III v. Enkay HWS India Limited*. - The applicant's counsel contended that the application under Section 130A should be filed in the High Court where the Tribunal is located (Mumbai). The doctrine of merger was emphasized, arguing that the order of the Commissioner of Customs, Trichy merged with the appellate order of the Tribunal at Mumbai. 2. Court's Consideration: - Jurisdiction is defined as the authority of a court to hear and determine a cause, which includes territorial jurisdiction. - The court referred to various judgments, including those of the Supreme Court, to understand the principles of territorial jurisdiction and the doctrine of merger. - The court noted that the Customs Act does not explicitly specify which High Court should hear a petition under Section 130A. - The court examined the interpretation of Clause (b) of Section 131C of the Customs Act and the relevant case law, including *Suraj Woolen Mills* and *Collector of Customs v. East India Commercial Co. Ltd.* 3. Court's Decision: - The court held that both the High Court of Madras and the High Court of Bombay have territorial jurisdiction over the Tribunal at Mumbai. - The suitor has the choice to select the forum convenient to him when the cause of action falls within the territorial jurisdiction of two courts. - The preliminary objection regarding territorial jurisdiction was overruled, and it was held that the application made before the Bombay High Court is maintainable. Issue B: Maintainability of the Application under Section 130A 1. Arguments Presented: - The respondent's counsel argued that the issues involved relate to the interpretation of exemption notification clauses, which ultimately relate to the value of goods for assessment purposes. Hence, as per Section 130E, the appeal should be maintainable before the Apex Court. - The applicant's counsel distinguished the judgments cited by the respondent and relied on other Supreme Court decisions to argue that the application is maintainable before the High Court. 2. Court's Consideration: - The court referred to the Supreme Court's decision in *Navin Chemicals Mfg. & Trading Co. Ltd. v. Collector of Customs*, which held that questions relating to the rate of duty or the value of goods for assessment purposes fall within the meaning of the expression used in the Customs Act. - The court also considered its own judgments in *Primella Sanitary Products* and *Auto Ignation Ltd.*, which followed the Supreme Court's decision in *Navin Chemicals*. 3. Court's Decision: - The court found merit in the respondent's contention that the issues involved relate to the value of goods for assessment purposes. - Following the Supreme Court's decision in *Navin Chemicals*, the court held that the application filed by the revenue is not maintainable before the High Court. - The application was dismissed with no order as to costs. Conclusion: The Bombay High Court overruled the preliminary objection regarding territorial jurisdiction, holding that the application is maintainable before it. However, it upheld the preliminary objection regarding the maintainability of the application under Section 130A, concluding that the application is not maintainable before the High Court as the issues involved relate to the value of goods for assessment purposes. The application was dismissed with no order as to costs.
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