2023 (10) TMI 453 - HC - Customs

Jurisdiction/authority/power of Appellate Tribunal to entertain an appeal against an order passed under Section 137 of the Customs Act, 1962 - application for compounding an offence - HELD THAT - From a plain perusal of the statutory provision under Section 137 of the Customs Act, it would clearly reveal that an application for compounding of any offence under this chapter has to be placed before the Chief Commissioner of Customs. The intention of the law makers while enacting the law or any authorized officer or a competent authority who has been entrusted with a power to decide or adjudicate, automatically becomes an adjudicating authority. Sub- section 1 of Section 129-A in this regard would clearly mean that an adjudicating authority is one who has passed a decision or an order. They would be an authority competent and thereby would become an adjudicating authority - on an application which stands decided under Section 137 (3), the Chief Commissioner becomes the adjudicating authority or a competent authority under the Act to take a decision on an application bringing him under the purview of an adjudicating authority. No provision under the Act envisages that decision taken under Section 137 (3) or for that matter, a decision taken by the Chief Commissioner would not be an appealable order and that his order would be final, so as to accept the contention of the learned counsel for the appellant that it is only a writ remedy that is available to him. There are no infirmity in the order passed by the Tribunal, nor does this Court find sufficient force in the arguments of the learned counsel for the appellant. Moreover, the order of the Tribunal also is not in any manner adverse to the interest of the Department - appeal dismissed.

Summary

Issues Involved:
The appeal filed by the Principal Commissioner of Customs assailing the order passed by the Customs, Excise & Service Tax Appellate Tribunal regarding the compounding of an offence under the Customs Act under Section 137.

History of Dispute:
The respondent had claimed for quashment of an order passed by the Chief Commissioner, which was declined. The High Court dismissed the writ petition stating that the petitioner had an appeal remedy available before the Appellate Tribunal. The respondent filed a review petition, which was dismissed, leaving the issue of maintainability of the appeal to be decided by the Appellate Tribunal.

Appellate Tribunal's Decision:
The Appellate Tribunal allowed the appeal and remanded the matter back to the Chief Commissioner to pass a fresh order after giving an opportunity to the appellant to present submissions and evidence. The order of the Appellate Tribunal was challenged in the present appeal.

Core Issue:
The main issue to be adjudicated is whether the Appellate Tribunal has the jurisdiction to entertain an appeal against an order passed under Section 137 of the Customs Act, 1962.

Legal Provisions:
Section 137 of the Customs Act allows for compounding of offences by the Chief Commissioner of Customs. Section 129-A provides for appeals to the Appellate Tribunal against decisions or orders passed by the Principal Commissioner of Customs or Commissioner of Customs as an adjudicating authority.

Interpretation of Adjudicating Authority:
The definition of adjudicating authority includes any authority competent to pass orders under the Act. The provision under Section 129-A (1) (a) allows appeals against decisions or orders passed by the Principal Commissioner or Commissioner of Customs as an adjudicating authority.

Decision and Analysis:
The Tribunal's order was found to be in accordance with the law as the Chief Commissioner becomes an adjudicating authority when deciding on applications under Section 137. The order of remand was not adverse to the interest of the Department. The appeal was rejected, and no costs were awarded.

Conclusion:
The appeal failed, and any pending miscellaneous petitions were closed as a result of the judgment.