2023 (6) TMI 786 - SC - Central Excise

Reduction of redemption fine - waiver of penalty - adjudication upon two show cause notices, one pertaining to the Central Excise Act and the second pertaining to the Customs Act - HELD THAT - The appeal pertaining to the excise component has been permitted to be withdrawn in terms of the request which was made by the assessee. What survives then is the appeal of the assessee pertaining to the component of the Customs Act 1962 and the Transferred Case arising from the appeal filed by the Department before the High Court of Judicature at Bombay. In terms of Section 130E(b) of the Customs Act, an appeal lies against any order of the CESTAT relating, among other things, 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. The appeal by the assessee pertaining to the customs component does not fall within the ambit of Section 130E(b) of the Customs Act 1962. Hence, it would be appropriate to transfer the appeal filed by the assessee to the High Court of Judicature at Bombay. Insofar as the Transferred Case is concerned, the Department had moved for transfer of the appeal which was instituted before the High Court to this Court in view of the pendency of the appeal filed by the assessee. Since the appeal by the assessee is being transferred to the High Court, the Transferred Case shall accordingly have to be remitted by restoring the appeal filed by the Department to the High Court of Judicature at Bombay for disposal. The appeal and the transferred case are accordingly disposed of.

Issues:
1. Appeal against judgment and order of CESTAT
2. Transferred Case for transfer of appeal before High Court
3. Settlement under SVLDR Scheme 2019
4. Withdrawal of appeal pertaining to excise component
5. Appeal pertaining to Customs Act
6. Transfer of appeal to High Court
7. Disposal of appeals expeditiously

Analysis:

1. The Supreme Court dealt with two proceedings: a Civil Appeal by the assessee against the CESTAT judgment and a Transferred Case by the Department for transferring an appeal before the High Court. The CESTAT disposed of the appeals concerning Central Excise Act and Customs Act, addressing issues like excise duty, confiscation, penalties, and redemption fines.

2. The appeal by the assessee involved adjudication under the Central Excise Act and orders under the Customs Act. The Department's appeal before the High Court related to the reduction of redemption fine and penalties. The CESTAT's decisions on these matters were crucial in both appeals.

3. An application was made under the SVLDR Scheme 2019 by the assessee to settle the excise dispute. The Court allowed withdrawal of the excise component from the appeal, retaining the customs component. The dispute under the excise component was resolved separately under the SVLDR Scheme.

4. Following the withdrawal of the excise component, the appeal focused on the Customs Act and the Transferred Case. The Court noted that an appeal against CESTAT's customs-related orders did not fall under a specific section of the Customs Act, necessitating the transfer of the appeal to the High Court.

5. Accordingly, the Civil Appeal was transferred to the High Court for disposal, while the Transferred Case was restored to the High Court's file. The Court emphasized expeditious disposal of both appeals, urging the High Court to resolve them within six months of receiving the order.

6. The Registrar of the High Court was directed to take necessary steps under the Chief Justice's guidance. Finally, the Supreme Court disposed of the appeal and the transferred case, along with any pending applications, to conclude the legal proceedings effectively.

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