1986 (2) TMI 175 - AT - Customs

Summary

Issues:
- Application for addition of parties in an appeal before the Tribunal
- Dispute regarding liability under Customs Act
- Impleading parties in the interest of justice
- Material facts for deciding the application
- Allegations in the notice to show cause
- Jurisdiction and scope of enquiry in second appeal
- Dismissal of the application for addition of parties

Analysis:

The judgment pertains to a miscellaneous application filed by the Respondent in an appeal before the Appellate Tribunal seeking the addition of three parties as Respondents. The application was based on a dispute concerning the liability arising from a demand notice issued under Section 28(1) of the Customs Act, 1962. It was argued that any decision in the ongoing appeal could impact the interests of the mentioned parties. The application invoked Rule 41 of the CEGAT Procedure Rules, 1982, to implead the parties in the interest of justice.

The material facts crucial for deciding the application included the importation of goods, specifically T.M.B.P. Coils, which were kept in a Customs Bonded Warehouse in Calcutta after arrival post-1-1-1984. An exemption notification was issued exempting a certain quantity of the imported goods from customs duty, and the Respondent had established Letters of Credit for the purchase of goods. Subsequently, a notice was issued alleging clearance of goods in excess at a concessional duty rate, leading to a demand for payment of short-levied duty.

The Tribunal highlighted that the notice to show cause was not issued to the parties sought to be impleaded, and they were not involved in the proceedings before the application. The judgment emphasized that the scope of the enquiry and jurisdiction in the second appeal was limited to the allegations in the original notice to show cause. It was stated that parties could have been examined as witnesses without being impleaded, and the Respondent could not seek to introduce new parties at this stage to strengthen their case.

Consequently, the Tribunal dismissed the application for the addition of parties, deeming it without merit. The judgment underscored the importance of adhering to procedural requirements and the limitations on expanding the scope of enquiry or jurisdiction beyond the original parties involved in the proceedings.