2004 (12) TMI 245 - AT - Customs

Summary

Issues:
- Appeal against dismissal of appeals by Commissioner (Appeals) following a High Court decision
- Challenge to imposition of penalty under Section 117 of the Customs Act

Analysis:
1. The appeals were filed challenging the dismissal by the Commissioner (Appeals) based on a High Court decision regarding the non-appealability of orders related to Customs supervision/cost recovery charges. The appellants contended that they were not disputing the recovery of supervision charges but were contesting the penalty imposed under Section 117 of the Customs Act. The High Court had held that orders related to recovery charges are not appealable under Section 128 of the Customs Act as they fall under executive powers. The appellants argued that the penalty imposed was unjustified as the recovery of supervision charges is a function of financial administration and not subject to appeal.

2. The Revenue representative acknowledged that the recovery of supervision charges is an administrative function and not appealable. However, it was agreed that the penalty imposed under Section 117 of the Customs Act was not appropriate. The Commissioner (Appeals) had dismissed the appeal, indicating an admission of the appeal under Customs Act provisions. The penalty imposition under Section 117 was deemed improper by the Revenue representative.

3. The Tribunal considered the submissions and referred to the Rajasthan High Court decision, which clarified that only orders passed under the Customs Act are appealable under Section 128. In this case, the issue pertained to the recovery of establishment/supervision charges as per bond conditions, making it non-appealable before the Commissioner (Appeals) or the Tribunal. Consequently, the imposition of penalty under Section 117 for administrative acts was deemed unjustifiable. The Tribunal modified the Commissioner (Appeals) order, stating that the appeal was not maintainable concerning supervision charges recovery, but the penalty under Section 117 was set aside.

4. The appeal was disposed of with the modification of the Commissioner (Appeals) order, clarifying the non-appealability of supervision charges recovery but setting aside the penalty imposed under Section 117 of the Customs Act.