2015 (11) TMI 1598 - HC - Customs

Invocation of Section 130 of the Customs Act, 1962 - the jurisdiction of the High Court in terms of Section 35G of the Central Excise Act - Held that - The provision in Section 130(1) of the Customs Act, as it stood before Section 130 was omitted is in pari materia with Section 35G of the Central Excise Act. So much so, the ratio of decision in Rajan Beedi Company v. Commissioner of Central Excise 2015 (9) TMI 407 - KERALA HIGH COURT applies clearly to the case in hand because the question raised in these appeals is as to whether the value of the goods determined by applying a particular value of equivalence between Hoppus Ton and Cubic Meter is acceptable or not. Hence, the appeals in hand relate to questions entirely referable to the valuation of the goods which is subjected to assessment proceedings. These appeals are, therefore, not maintainable - appeals are dismissed without prejudice to appeals in appropriate jurisdiction, in accordance with law

Summary

Issues:
Appeal under Section 130 of the Customs Act, 1962 invoking Section 130 prior to its omission by the National Tax Tribunal Act, 2005. Interpretation of Section 130(1) of the Customs Act in comparison with Section 35G of the Central Excise Act. Jurisdiction of High Court in relation to the determination of questions regarding the rate of duty or value of goods for assessment.

Analysis:
The judgment deals with appeals filed by the Commissioner of Customs under Section 130 of the Customs Act, 1962, invoking the provision prior to its omission by the National Tax Tribunal Act, 2005. Section 130(1) of the Customs Act allows appeals to the High Court from orders passed by the Appellate Tribunal if the case involves a substantial question of law, excluding matters related to the rate of duty or value of goods for assessment. This provision is similar to Section 35G of the Central Excise Act.

The court referred to previous decisions where it was held that appeals to the High Court under Section 35G of the Central Excise Act are not permissible for orders related to questions concerning the rate of duty or value of goods for assessment. The court emphasized that any question related to the value of goods for assessment falls outside the jurisdiction of the High Court under Section 35G of the Central Excise Act due to the exclusionary clause in sub-section (1) of that Section.

In the present case, the court applied the same reasoning to the appeals under Section 130 of the Customs Act, stating that the provision is in pari materia with Section 35G of the Central Excise Act. The court concluded that the appeals in question raised issues solely related to the valuation of goods, which is part of the assessment proceedings. Therefore, the appeals were deemed not maintainable under Section 130(1) of the Customs Act.

As a result, the court dismissed the appeals without prejudice to filing appeals in the appropriate jurisdiction as per the law. This judgment clarifies the scope of jurisdiction of the High Court in relation to questions involving the rate of duty or value of goods for assessment under Section 130 of the Customs Act, aligning it with the interpretation of similar provisions in the Central Excise Act.