2014 (1) TMI 1392 - HC - Customs

Classification of goods - Import of bituminous coal - Whether the CESTAT s order that without department s chemical test, the department has no basis to classify the impugned goods under heading 2701.12, is correct in law - Held that - The nature of demand made by the appellant/Department is that the coal imported by the respondent is not an ordinary steam coal and it is only a bituminous coal and the same is liable to be taxed - The demand made by the appellant /Department has been accepted in Orders-in-Original as well as the orders passed by the Commissioner of Appeals. But the CESTAT has set aside the demand made by the appellant/Department and also set aside the Orders-in-Original as well as the orders passed by the Commissioner of Appeals - A conjoint reading of the said Sections would clearly go to show that, with regard to determination of any question having a relation to the right of duty of customs or to the value of goods for the purpose of assessment, Appeal shall lie before the Supreme Court - Decided in favour of Revenue.

Summary

Issues:
1. Appeal against final orders passed by CESTAT, Chennai.
2. Classification of imported coal for customs duty.
3. Jurisdiction of High Court to entertain the appeals.

Analysis:
1. The Civil Miscellaneous Appeals were filed against the final orders passed by CESTAT, Chennai, related to the classification of imported coal for customs duty. The appellant claimed that the respondent imported only bituminous coal and should pay customs duty based on revised rates. The Commissioner of Appeals upheld the original orders, leading to appeals before CESTAT.

2. CESTAT, after hearing both sides, found the Department's claim unsustainable and allowed all appeals, setting aside the demand for customs duty. The appellant argued that CESTAT erred by not addressing the core issue of coal classification, leading to the appeal before the High Court.

3. The respondent contended that the issue involved the rate of duty and goods classification, falling under Sections 130A and 130E (b) of the Customs Act, which mandate appeals to the Supreme Court. The appellant's demand was accepted in Orders-in-Original and by the Commissioner of Appeals but overturned by CESTAT without a specific finding on the coal classification issue.

4. The High Court analyzed Sections 130A and 130E (b) of the Customs Act, emphasizing that appeals on questions related to customs duty or goods classification should be directed to the Supreme Court. Citing previous decisions, the Court concluded that the appeals were not maintainable before the High Court and dismissed them, highlighting that such matters should be addressed by the Supreme Court.

In conclusion, the High Court dismissed the Civil Miscellaneous Appeals, stating they were not maintainable before the Court due to the nature of the issues involved, which should be addressed by the Supreme Court as per the Customs Act.