2015 (2) TMI 1191 - HC - Customs

Maintainability of appeal - confiscation u/s 111(d) of the CA, 1962 - imposition of penalty u/s 112(a) of the CA, 1962 - Polyester Dyed Piled Fabrics - prohibited goods - exemption under N/N. 53/97-Cus., dated 6-3-1997 - Held that - A Division Bench of this Court in the case of Commissioner of Central Excise & Customs v. Stovec Industries Ltd., 2013 (1) TMI 72 - GUJARAT HIGH COURT held that in view of instruction dated 17-8-2011, tax appeal below ₹ 10 lakh is not maintainable and this instruction also applies to the pending appeal. Following the aforesaid decision of the Division Bench, we dismiss this tax appeal as not maintainable. Accordingly, the questions of law posed in this appeal are answered in favour of the assessee and against the Revenue.

Summary

Issues:
1. Confiscation of goods under Section 111(d) of the Customs Act, 1962.
2. Imposition of penalty under Section 112(a) of the Customs Act, 1962.
3. Claiming exemption under Notification No. 53/97-Cus., dated 6-3-1997.

Analysis:
1. The case involved a show cause notice issued to the respondent regarding the confiscation of Polyester Dyed Piled Fabrics worth &8377; 26,50,819.42. The Commissioner (Adjudication) Central Excise, Ahmedabad, ordered confiscation and imposed a penalty of &8377; 5 Lacs. The respondent appealed to the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench at Ahmedabad, which set aside both the confiscation and the penalty. The Revenue challenged this decision in the High Court.

2. The High Court referred to a previous decision in the case of Commissioner of Central Excise & Customs v. Stovec Industries Ltd., where it was held that tax appeals below &8377; 10 lakh were not maintainable as per an instruction dated 17-8-2011. Following this precedent, the High Court dismissed the tax appeal in the present case as not maintainable. Consequently, the questions of law posed in the appeal were answered in favor of the assessee and against the Revenue.

3. The Tribunal's decision to set aside the confiscation of goods and the penalty imposed under Section 112(a) of the Customs Act, 1962 was upheld by the High Court. Additionally, the Tribunal's ruling regarding the goods not becoming prohibited goods under Section 111(a) of the Customs Act, 1962 and the claim for exemption under Notification No. 53/97-Cus., dated 6-3-1997, was also supported by the High Court. The judgment favored the respondent, and the appeal by the Revenue was dismissed.