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1997 (2) TMI 115 - SC - CustomsWhether 1st respondents in these civil writ appeals could be said to be persons aggrieved' within the meaning of Section 129A of the Customs Act, 1962 so that they could challenge before the Customs, Excise and Gold (Control) Appellate Tribunal the order passed by the Additional Collector of Customs, Bombay dated 5th June, 1989 agreeing with the notings made by the Assistant Collector of Customs dated 31st May, 1989 recommending release of the imported goods to the common appellant on payment of full customs duty? Held that - The High Court had committed a patent error of law in taking the view that the concerned writ petitioners before it had sufficient locus standi to prefer appeals before CEGAT. The decision of CEGAT holding that they had no such locus standi was perfectly justified on the scheme of the Act and it was wrongly set aside by the High Court. Consequently the appeals will be required to be allowed. As the proceedings are pending since long before the High Court so far as the aforesaid challenge is concerned it would be in the interest of justice to request the High Court to decide the said writ petition on the merits of the question regarding the legality and property of the order of Collector/Assistant Collector of Customs dated 5th June, 1989 as expeditiously as possible preferably within a period of four months from the date of receipt of a copy of this order at its end.The appeals are accordingly allowed. The common judgment under appeal as rendered by the High Court is quashed and set aside with a direction to the High Court to decide on merits.
Issues Involved:
1. Locus standi of Respondent No. 1 (HPF and Union of India) under Section 129A of the Customs Act, 1962. 2. Legality of the importation of photo-sensitized material by the appellant. 3. Interim relief and stay orders concerning the release of imported goods. 4. Auction and disposal of imported goods pending the appeal. 5. Jurisdiction and powers of the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT). Issue-wise Detailed Analysis: 1. Locus Standi of Respondent No. 1 under Section 129A of the Customs Act, 1962: The primary issue was whether HPF and the Union of India could be considered "persons aggrieved" under Section 129A of the Customs Act, 1962, allowing them to challenge the Additional Collector of Customs' order before CEGAT. The Supreme Court emphasized that the right to appeal is a creature of statute and must be exercised by those permitted by the statute. The Court held that only the parties to the proceedings before the adjudicating authority (Collector of Customs) could prefer an appeal to CEGAT. It was concluded that neither HPF, a business rival, nor the Union of India had the locus standi to file an appeal under Section 129A(1) of the Act as they were not directly aggrieved parties in the statutory sense. 2. Legality of the Importation of Photo-sensitized Material by the Appellant: The Supreme Court did not delve deeply into the legality of the importation itself, as the primary focus was on the locus standi issue. However, it was noted that the legality of the importation would be a matter for the High Court to decide in the pending writ petition filed by the Union of India. 3. Interim Relief and Stay Orders Concerning the Release of Imported Goods: The High Court had initially granted interim relief to HPF, staying the clearance and removal of the imported goods. The Supreme Court noted that the High Court should not have presumed the outcome of the Supreme Court's decision on the appeal and should have left the matter open for appropriate orders. The interim relief granted by the High Court was set aside, and the matter was directed to be examined on its merits by the High Court. 4. Auction and Disposal of Imported Goods Pending the Appeal: Pending the appeals, the Supreme Court had directed the Chief Controller of Imports and Exports to auction the imported goods to prevent deterioration. The amount fetched from the auction was deposited with the Court. The Supreme Court decided to continue the investment of the auction proceeds and directed that the withdrawal of the amount would depend on the final outcome of the Union of India's writ petition in the High Court. 5. Jurisdiction and Powers of CEGAT: The Supreme Court clarified that CEGAT derives its jurisdiction and powers solely from the statute creating it. The statutory scheme of the Customs Act provides specific modes for challenging the orders of the Collector of Customs, which do not include direct appeals by third parties like HPF or the Union of India. The Court emphasized that the statutory procedure laid down by the Parliament must be followed, and bypassing it by filing direct appeals to CEGAT was not permissible. Conclusion: The Supreme Court allowed the appeals, quashed the High Court's common judgment, and directed the High Court to decide the Union of India's writ petition on its merits. The Court emphasized that the statutory right of appeal under Section 129A of the Customs Act could not be extended to third parties like HPF or the Union of India without a direct legal interest in the goods involved in the adjudication process. The auction proceeds were to remain invested, with withdrawal subject to the final outcome of the High Court's decision.
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