2017 (1) TMI 1757 - HC - Customs

Jurisdiction - impugned order has been passed by an Officer, who was not vested with the jurisdiction to hear and adjudicate upon the matter - Absolute Confiscation - Gold Bits - HELD THAT - The Commissioner of Appeals and the Joint Secretary of the GOI, who exercised the power of the revisional authority, hold the same rank. Having regard to the observations made in M/S NVR FORGINGS VERSUS UNION OF INDIA AND OTHERS 2016 (5) TMI 7 - PUNJAB AND HARYANA HIGH COURT , where it was held that the order in appeal as well as revisionary order had been passed by the officers of the same rank which is not permissible as per law , the contention of the petitioner will have to be sustained. Petition disposed off.

Summary

Issues:
Challenge to order under Customs Tax Act, 1962 - Jurisdictional flaw due to same rank of officers - Corrective measures by GOI

Analysis:
The writ petition challenges an order passed by the Government of India (GOI) under the Customs Tax Act, 1962. The petitioner was initially given the option of redemption for gold bits but was later imposed with a redemption fine and penalty. The Commissioner of Appeals reduced the redemption fine but upheld the penalty. Subsequently, the Revisional Authority directed the absolute confiscation of the gold bits, leading to the petitioner's grievance and the filing of the writ petition.

The main contention raised by the petitioner was that the order was passed by an officer of the same rank as the Commissioner of Appeals, which created a jurisdictional flaw. Citing a judgment from the Punjab and Haryana High Court, the petitioner argued that such a situation is impermissible under the law. The Supreme Court's dismissal of a Special Leave Petition further supported the petitioner's stance.

The respondent acknowledged the issue and informed the court that corrective measures were being considered by the GOI to address the jurisdictional concern raised by conferring revisional power to a higher-ranked officer than the Commissioner of Appeals. After hearing both parties and examining the relevant facts and legal precedents, the court found merit in the petitioner's argument regarding the jurisdictional flaw due to officers of the same rank issuing the orders.

Consequently, the court set aside the impugned order and granted the GOI eight weeks to pass a fresh order after implementing corrective measures. If the necessary steps were not taken within the specified period, the respondents were directed to ensure compliance with the Commissioner of Appeals' order from 29.06.2015. The writ petition was disposed of accordingly, with no costs imposed on either party.