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2017 (12) TMI 1460 - HC - CustomsJurisdiction - provisional release of the seized vessel - Whether the Tribunal has jurisdiction to entertain an Appeal against a letter allowing provisional release of Vessel Sagar Fortune under Section 110A of the Customs Act, 1962? Held that - To our mind the communication / letter dated 25th September 2017 is a decision taken by the adjudicating authority and is appealable to the Tribunal under Section 129(1)(a) of the Act - in the cases of Shiv Mahal Textiles 2012 (12) TMI 998 - HIGH COURT OF RAJASTHAN the Revenue has successfully urged before the Court that an appeal from an order passed under Section 110 A of the Act is available. Appeal dismissed - decided in favor of respondent-assessee.
Issues Involved:
1. Jurisdiction of the Tribunal to entertain an appeal against a letter allowing provisional release of a vessel under Section 110A of the Customs Act, 1962. Issue-wise Detailed Analysis: 1. Jurisdiction of the Tribunal to entertain an appeal against a letter allowing provisional release of a vessel under Section 110A of the Customs Act, 1962: The primary issue in this case is whether the Tribunal has jurisdiction to entertain an appeal against a letter allowing provisional release of a vessel under Section 110A of the Customs Act, 1962. The appeal challenges the Tribunal's order dated 31st October 2017, which set aside the letter dated 25th September 2017 from the Commissioner of Customs (Import-I) allowing provisional release of the vessel "Sagar Fortune" under certain conditions. Arguments by the Revenue: - The Revenue argued that the Tribunal's jurisdiction under Section 129A(1)(a) of the Act is limited to entertaining appeals from a "decision or order" passed by the Commissioner of Customs as an adjudicating authority. They contended that the letter dated 25th September 2017 was merely a letter and not an order or decision, and thus not appealable. - It was also argued that even if the letter was considered a decision or order, it was not issued by the Commissioner of Customs as an adjudicating authority, as it was pending adjudication. - The Revenue pointed out that the Tribunal's larger bench in Commissioner of Central Excise and Service Tax v. Gaurav Pharma Ltd. had taken a view that such letters are appealable, but this decision was under challenge before the Punjab and Haryana High Court. Arguments by the Respondent: - The Respondent argued that the letter dated 25th September 2017 was an interim order/decision pending final adjudication and had an element of adjudication, thus making it appealable. - They emphasized that the amendment to Section 110A of the Act in 2011, which replaced "Commissioner of Customs" with "adjudicating authority," indicated that provisional release decisions involve adjudication. - The Respondent relied on the larger bench decision in Gaurav Pharma and other case laws, including decisions from the Delhi High Court, which supported the view that such letters are appealable. Court's Analysis: - The court noted that the Tribunal was bound by the larger bench decision in Gaurav Pharma at the time it entertained the appeal. The doctrine of precedents obliged the Tribunal to entertain the appeal from the letter dated 25th September 2017. - The court rejected the Revenue's argument that the letter was not an order or decision. It emphasized that an order or decision under Section 129A(1)(a) of the Act includes any binding direction that affects the competing interests of the Revenue and the importer. - The court also rejected the argument that the letter was not issued by the Commissioner of Customs as an adjudicating authority. It highlighted that Section 110A, as amended, requires the adjudicating authority to make interim decisions, thus involving adjudication. - The court referred to the Supreme Court's decision in Automotive Tyre Manufacturers Association v. Designated Authority, which provided a test to distinguish between administrative and quasi-judicial orders. Applying this test, the court concluded that the provisional release decision had civil consequences and was quasi-judicial in nature. Conclusion: The court held that the letter dated 25th September 2017 was a decision taken by the adjudicating authority and was appealable under Section 129A(1)(a) of the Act. The substantial question of law was answered in the affirmative, in favor of the Respondent and against the Revenue. The appeal was dismissed, and no order as to costs was made. The Notice of Motion was also dismissed as infructuous.
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