2014 (9) TMI 233 - SC - Customs

Maintainability of appeal before Supreme court - question of law - Held that - At the outset, the learned Solicitor General concedes that, although important questions of law do arise from the order of the Tribunal, particularly, in view of insertion of sub-section (11) in Section 28 of the Act, yet these appeals against the order of the Tribunal would not be maintainable, as the issues raised neither involve a question relating to rate of duty nor valuation of goods. He, therefore, prays that the revenue may be permitted to withdraw these appeals with liberty to file appeals before the High Court under Section 130 of the Act. He also prays that the High Court may be requested to deal with the appeals, without raising the question of limitation. Revenue allowed files appeals in the High Court within ten weeks from the date of receipt of a copy of this order, the High Court shall examine the appeals on merits.

Issues:
1. Maintainability of appeals under Section 130E(b) of the Customs Act, 1962.
2. Question of law arising from the order of the Tribunal.
3. Request for withdrawal of appeals by the revenue.
4. Permission to file appeals before the High Court under Section 130 of the Act.

Issue 1: Maintainability of appeals under Section 130E(b) of the Customs Act, 1962
The Supreme Court was approached with appeals by the Revenue under Section 130E(b) of the Customs Act, 1962 against an order passed by the Customs, Excise & Service Tax Appellate Tribunal. The Court initially observed that the appeals might not be maintainable as the order did not pertain to a question related to the rate of duty of customs or the valuation of goods for assessment purposes. The learned Solicitor General representing the Revenue acknowledged that important legal questions arose from the Tribunal's order, specifically regarding the insertion of sub-section (11) in Section 28 of the Act. However, he agreed that the appeals were not maintainable due to the issues raised not involving duty rates or valuation of goods.

Issue 2: Question of law arising from the order of the Tribunal
Despite recognizing the significance of legal questions arising from the Tribunal's order, the Court concurred with the Solicitor General's assessment that the appeals were not maintainable as they did not relate to duty rates or valuation of goods. The Solicitor General requested permission for the Revenue to withdraw the appeals with the liberty to file them before the High Court under Section 130 of the Act. The respondent's counsel did not object to this request made on behalf of the Revenue.

Issue 3: Request for withdrawal of appeals by the revenue
The learned Solicitor General representing the Revenue requested the Court to allow the withdrawal of the appeals, citing that the issues raised did not pertain to duty rates or valuation of goods. The Solicitor General sought permission for the Revenue to file appeals before the High Court under Section 130 of the Act. The respondent's counsel did not oppose this request, leading to the Court dismissing the appeals as not pressed.

Issue 4: Permission to file appeals before the High Court under Section 130 of the Act
Upon the request of the Solicitor General, the Court granted permission for the Revenue to withdraw the appeals and file them before the High Court within ten weeks from the date of receipt of the Court's order. The High Court was directed to examine the appeals on merits, allowing both parties to present all available legal grounds for consideration.

This detailed analysis of the Supreme Court judgment highlights the issues surrounding the maintainability of appeals under the Customs Act, the legal questions arising from the Tribunal's order, the request for withdrawal of appeals by the Revenue, and the subsequent permission granted to file appeals before the High Court under Section 130 of the Act.

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