2019 (4) TMI 1756 - HC - Customs

Non-compliance with the pre-deposit - statutory remedy of appeal - Section 128 of the Customs Act, 1962 - HELD THAT - It is undisputed that a remedy of appeal provided in the statute is available to the petitioner. The condition of pre deposit of 7.5% amount has been held not to be arbitrary by this Court. The contentions regarding illegality which are sought to be raised in the petition can always be raised before the Appellate Authority. We declined to entertain this petition under Article 226 of the Constitution of India on the ground of availability of an efficacious remedy of a statutory appeal - the petition is disposed of.

Summary

Issues: Availability of statutory appeal under Section 128 of the Customs Act, 1962; Legality and jurisdiction of impugned directions; Requirement of pre-deposit for entertaining the appeal; Disposition of the petition under Article 226 of the Constitution of India.

In this judgment by the Bombay High Court, the petitioner challenged certain directions contained in a communication dated 25th February, 2019, arguing that they were illegal and without jurisdiction. The petitioner's counsel contended that although a statutory appeal under Section 128 of the Customs Act, 1962 was available, the requirement to deposit 7.5% of the demanded amount for entertaining the appeal was a barrier. The petitioner relied on decisions from Gujarat, Punjab, and Haryana High Courts to support the claim of illegality and jurisdictional issues regarding the impugned directions.

The Court acknowledged that the petitioner had the remedy of appeal under the statute, emphasizing that the pre-deposit condition of 7.5% was not considered arbitrary by the Court in previous cases. The Court highlighted that contentions of illegality could be raised before the Appellate Authority, indicating that the petitioner could challenge the impugned directions through the statutory appeal process. Therefore, the Court declined to entertain the petition under Article 226 of the Constitution of India, citing the availability of an efficacious remedy through the statutory appeal.

As a result, the petition was disposed of, with the Court keeping the remedy of the petitioner open and all contentions preserved for future proceedings. Notably, the Court observed that the petition had been pending since its filing on 30th March, 2019, until the date of the judgment. The judgment underscores the importance of utilizing the statutory appeal mechanism provided under the Customs Act, 1962 for addressing grievances related to directions issued by the authorities, while also reaffirming the validity of the pre-deposit requirement for entertaining such appeals.