2019 (7) TMI 514 - HC - Customs

Maintainability of appeal - appropriate forum - disposal of the case only on the application of Early Hearing, without giving opportunity to the respondent - Principles of natural justice - HELD THAT - Against an order of the Appellate Tribunal relating to the determination of any question having a relation to the rate of duty of customs or to the value of goods for the purposes of assessment shall lie before the Supreme Court and the High Court has no jurisdiction to entertain an appeal against such order. Having regard to the fact that controversy involved in the present case directly relates to the question of determination of rate of duty of customs, the appeal is not maintainable before this Court. The appeal is disposed of as not maintainable before this Court

Summary

Issues:
1. Maintainability of the Tax Appeal under Section 130 of the Customs Act, 1962.
2. Jurisdiction of the High Court to entertain an appeal relating to the determination of the rate of duty or the value of goods for assessment.

Analysis:
1. The Tax Appeal under Section 130 of the Customs Act, 1962 was filed by the Commissioner of Customs challenging an order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The questions of law raised included issues related to the tribunal's right to dispose of the case on early hearing application without giving the respondent an opportunity to object, the right of the respondent to file cross objections within 45 days, premature decision-making by the tribunal, and selective handling of appeals by the tribunal. The respondent's counsel raised a preliminary objection on the maintainability of the appeal, arguing that the case pertained to the determination of the rate of duty, which falls under Section 130 of the Act, making the appeal not maintainable before the High Court.

2. The learned counsel for the appellant acknowledged the lack of response to the preliminary objection raised by the respondent. Section 130 of the Customs Act allows appeals to the High Court from orders passed by the Appellate Tribunal, excluding those related to the determination of duty rates or goods valuation. Similarly, Section 130E provides for appeals to the Supreme Court for orders concerning duty rates or goods valuation. Since the controversy in this case directly related to the determination of the rate of duty of customs, the High Court concluded that the appeal was not maintainable before it. Therefore, the appeal was disposed of as not maintainable, and the Commissioner was advised to seek other legal remedies in the appropriate forum.

3. The judgment emphasized that the High Court lacked jurisdiction to entertain appeals involving questions related to duty rates or goods valuation, which fall under the purview of the Supreme Court. Consequently, the connected Civil Application was also disposed of as the main appeal was deemed not maintainable. The decision highlighted the importance of adhering to statutory provisions and seeking legal remedies in the correct forum based on the nature of the dispute, ensuring the proper application of the law in customs-related matters.