2019 (6) TMI 337 - HC - Customs

Penalty u/s 114(iii) of the Customs Act, 1962 - no evidence or partly relevant and partly irrelevant evidence - HELD THAT - The legal maxim Cursus Curine Est Lex Curise i.e. the practice of the Court is the law of the Court is invoked. At the request of Mr. Jetly, this appeal is adjourned by a period of four weeks from today to enable Mr. Jetly to obtain instructions and file appropriate affidavit, if so advised. Stand over to 1st July, 2019.

Summary

Issues:
1. Tribunal's setting aside of penalty under Section 114(iii) of the Customs Act, 1962
2. Timeliness of Tribunal's order after conclusion of hearing

Issue 1: Tribunal's setting aside of penalty under Section 114(iii) of the Customs Act, 1962:
The appeal under Section 130 of the Customs Act, 1962 was admitted based on substantial questions of law regarding the Tribunal's setting aside of a penalty of ?1 crore imposed under Section 114(iii) of the Customs Act, 1962. The appellant questioned whether the Tribunal's decision was based on no evidence or on partly relevant and partly irrelevant evidence, deeming it perverse and arbitrary. Additionally, the appellant raised concerns about the Tribunal's order being passed after six months from the date of the hearing without addressing the issues raised and submissions made. The appellant cited judgments from previous cases to support the argument that such delays in passing orders are not sustainable in law.

Issue 2: Timeliness of Tribunal's order after conclusion of hearing:
During the hearing, the appellant's counsel highlighted the President of the Tribunal's orders requiring immediate pronouncement of judgments after the conclusion of arguments. If an order is not passed within two months, consent from the President is necessary to continue holding the matter, with a final order to be issued within six months. In this case, the appeal's hearing concluded on 9th March, 2016, and the impugned order was pronounced on 9th September, 2016. The appellant sought time to investigate whether the necessary consent was obtained from the President for the delay in passing the order. The legal maxim "Cursus Curine Est Lex Curise" was invoked to support the application for more time to gather information and file an appropriate affidavit.

The court adjourned the appeal for four weeks to allow the appellant's counsel to obtain instructions and submit relevant details regarding the disposal of the appeal by the Tribunal. It was clarified that other appeals linked to the case would be heard independently as they involved different issues. The case was scheduled to be reviewed further on 1st July 2019.