2020 (10) TMI 1112 - AT - Customs

Right to seek the test of the consignments for determining whether the goods imported confirm to IS 3024 2015 - Seizure of imported consignment - 242 MT of CRGO Steel Sheets/ Coils - prime quality goods or not - HELD THAT - Undoubtedly in the present case the ADG, Adjudication, DRI Mumbai, was acting as adjudicating authority, and has made this record of personal hearing as adjudicating authority. Also by stating As regards request for testing, it was informed to them that the same was considered and found to be not acceptable, in view of the fact of the case and evidences placed before the adjudicating authority. , he has made a determination and have rejected the request for testing of the consignment made by the appellant. Any such determination during the course of adjudication by the adjudicating authority is an order passed by the passed by the adjudicating authority and is within the purview of section 129A(1)(a) against which the appeal lies to this tribunal. The matter needed to be considered in more serious manner and proper reasons to be assigned, because in any judicial/ quasi judicial proceedings, the effected party has the right to lead the evidence in the manner which suits to him best. Any order which is contrary to this basic principle has to be more considered and reasoned. The sentence As regards request for testing, it was informed to them that the same was considered and found to be not acceptable, in view of the fact of the case and evidences placed before the adjudicating authority. appearing in the record of personal hearing dated 18.11.2019 is set aside - matter remanded to adjudicating authority for reconsideration of the request made by the appellant for testing of the consignments.

Summary

Issues involved:
1. Appeal against communication rejecting request for testing of imported goods.
2. Maintainability of the appeal before the Appellate Tribunal.

Detailed Analysis:

Issue 1: Appeal against communication rejecting request for testing of imported goods
The appeal was directed against a communication by the ADG, Adjudication, DRI, Mumbai, rejecting the request for testing of approximately 242 MT of CRGO Steel Sheets/Coils imported by the Appellant. The Appellant's Counsel argued that the communication constituted an order determining their right to seek testing of the goods to confirm compliance with IS 3024:2015 and quality standards. The Appellant contended that the goods were seized based on improper mill certificates, and their request for testing in a BIS approved laboratory was rejected without reason. The Appellant sought to contest the show cause notice and establish compliance with standards. The Authorized Representative for the revenue argued that the communication was an internal record and not an order under section 129A of the Customs Act, making the appeal non-maintainable.

Issue 2: Maintainability of the appeal before the Appellate Tribunal
The Appellate Tribunal considered Section 129A(1)(a) of the Customs Act, 1962, which allows appeals against decisions or orders passed by the Principal Commissioner of Customs or Commissioner of Customs as an adjudicating authority. The Tribunal noted that the ADG, Adjudication, DRI Mumbai, acted as the adjudicating authority and made a determination rejecting the request for testing during the personal hearing. Referring to a Supreme Court decision in Saheli Leasing Industries case, the Tribunal emphasized the need for serious consideration and proper reasoning in adjudicatory decisions. Consequently, the Tribunal set aside the communication rejecting the testing request and remanded the matter to the adjudicating authority for reconsideration. The appeal was allowed, and the matter was remanded for further consideration.

In conclusion, the Tribunal found merit in the Appellant's arguments regarding the rejection of the testing request and emphasized the importance of proper reasoning in adjudicatory decisions. The appeal was allowed, and the matter was remanded for reconsideration by the adjudicating authority.