2019 (2) TMI 496 - AT - Customs

Maintainability of appeal - Jurisdiction - Payment of Drawback - Classification of export goods - Section 129A in the Customs Act, 1962 - Held that - Section contemplates that any order relates to payment of drawback is provided in Chapter X and Rules made therein, the Tribunal has no jurisdiction to decide the appeals. In the present case, there is no dispute that though the issue is of classification but it has consequential effect of payment of drawback. Therefore, the issues relates to drawback, would not have the jurisdiction of this Tribunal. The issues relates to drawback, would not have the jurisdiction of this Tribunal. The appellants have to file revision application before the proper authority under Section 129DD of the Customs Act, 1962 - the appeals are not maintainable and the same are dismissed.

Summary

Issues:
Payment of drawback consequent to classification dispute.

Analysis:
The appeals were arising from the order of the Commissioner (Appeals) upholding the original authority's decision, rejecting the appeals. The main issue was the payment of drawback following a classification dispute. The appellant's representative argued that the matter revolved around the classification of export goods, giving jurisdiction to the Tribunal. On the other hand, the revenue's representative contended that since the issue stemmed from the Commissioner (Appeals) order, the proper remedy for the appellant was to file an application before the Joint Secretary (RA), making the appeals not maintainable. The Tribunal, after considering both sides' submissions, found that the appeals could be disposed of on the preliminary issue of maintainability. Therefore, they did not delve into the merits of the classification issue related to the payment of drawback to the appellant.

The Tribunal referred to Section 129A of the Customs Act, 1962, which outlined the scope of appeals to the Appellate Tribunal. The section specified that appeals could be made against certain orders, including those related to decisions by the Commissioner of Customs as an adjudicating authority or orders passed by the Commissioner (Appeals). Notably, the section also contained a provision stating that no appeal shall lie to the Appellate Tribunal concerning matters related to payment of drawback as provided in Chapter X and the rules made thereunder. The Tribunal concluded that although the issue at hand involved classification, its consequential effect on the payment of drawback meant that the Tribunal lacked jurisdiction to decide on the appeals. Therefore, the appellants were advised to file a revision application under Section 129DD of the Customs Act, 1962, before the Revisionary Authority, Government of India. Consequently, the appeals were deemed not maintainable and dismissed, with the appellants granted liberty to pursue the appropriate revision application.

In summary, the judgment highlighted the importance of jurisdictional limitations based on the nature of the issue at hand, emphasizing that matters related to payment of drawback fell outside the purview of the Tribunal's jurisdiction as per the Customs Act, 1962. The decision provided clarity on the proper course of action for the appellants, directing them to the relevant authority for further redressal.