1998 (3) TMI 148 - HC - Customs

Summary

Issues Involved:

1. Jurisdiction of the Tribunal to recall or review its earlier order.
2. Existence of a mistake apparent on the face of the record.
3. Inherent powers of the Tribunal to correct errors.
4. Applicability of precedents cited by the petitioner.
5. Procedural versus substantive review.

Issue-wise Detailed Analysis:

1. Jurisdiction of the Tribunal to Recall or Review its Earlier Order:

The petitioner argued that the Tribunal has no power to recall or review its earlier order, asserting that the remedy for the respondents was to file an appeal against the order reducing the fine. The Tribunal's inherent power to review was contested, citing that such power is not explicitly conferred by the statute. However, the Tribunal's decision to recall its order was based on Section 129B(2) of the Customs Act, 1962, which allows the Tribunal to rectify any mistake apparent from the record within four years from the date of the order. The Tribunal's inherent jurisdiction to correct its errors was also considered, emphasizing that the ends of justice would be frustrated without such power.

2. Existence of a Mistake Apparent on the Face of the Record:

The Tribunal found a mistake in its April 24, 1997, order, where it incorrectly stated that no evidence was produced by the department indicating that identical goods were sold at Rs. 50/- to Rs. 60/- per kg. This observation was not in conformity with the facts and evidence discussed by the adjudicating authority. The Tribunal's decision to recall its order was based on this apparent mistake, which was self-evident and did not require a process of reasoning to identify.

3. Inherent Powers of the Tribunal to Correct Errors:

The Tribunal's inherent power to correct its errors was supported by Rule 41 of the Customs, Excise, and Gold (Control) Appellate Tribunal (Procedure) Rules, 1982, which allows the Tribunal to make orders or give directions necessary to secure the ends of justice. The Supreme Court's decision in Grindlays Bank Ltd. v. Central Government Industrial Tribunal and Others was cited, establishing that a Tribunal has ancillary or incidental powers necessary to discharge its functions effectively and to correct procedural defects or inadvertent errors.

4. Applicability of Precedents Cited by the Petitioner:

The petitioner relied on various precedents to argue that the Tribunal has no power to review its orders. However, the court found these decisions inapplicable to the present case. The Supreme Court's decisions in Satyanarayan Laxminarayan Hegde and Others v. Mallika Arjun B. Tirimela, A.T. Sharma v. A.P. Sharma and Others, and Parsion Devi and Others v. Sumitri Devi and Others were distinguished, emphasizing that a procedural review to correct a palpable error is different from a substantive review on merits.

5. Procedural Versus Substantive Review:

The court differentiated between procedural and substantive reviews, noting that the Tribunal's action was a procedural review to correct a palpable error. The Supreme Court's decision in S. Nagaraj and Others v. State of Karnataka and Another was cited, highlighting that justice transcends procedural technicalities and that courts have a duty to correct errors to prevent miscarriage of justice. The Tribunal's decision was seen as an exercise of its inherent power to correct a procedural mistake, not a substantive review of the merits of the case.

Conclusion:

The court concluded that the Tribunal had the jurisdiction to recall its earlier order under Section 129B(2) of the Customs Act, 1962, and its inherent powers to correct errors. The mistake identified was apparent on the face of the record, justifying the Tribunal's decision to recall its order. The precedents cited by the petitioner were found inapplicable, and the Tribunal's action was characterized as a procedural review, not a substantive one. The petition was dismissed, and the rule was discharged with no order as to costs.