2006 (9) TMI 7 - SC - Central Excise

Customs Reference of High Court - Question of law u/s 130A which may not be a substantial question of law, arises from Tribunal order and stated in reference application - High Court to decide such question of law and not to dismiss appeal on ground that no substantial question of law is involved

Summary

Issues:
Impugned order dismissal based on no question of law | Interpretation of Section 130A of the Customs Act | Error in High Court order | Distinction between question of law and substantial question of law | Comparison with Civil Procedure Code Section 100 | Setting aside impugned judgment and remitting the matter back to High Court

Analysis:
The judgment deals with the dismissal of a reference application under Section 130A of the Customs Act by the High Court, stating that no question of law arose from the tribunal's order. The appellant argued that no substantial question of law needed to be framed under Section 130A and that the High Court erred in its decision. The provisions of Section 130A were examined, emphasizing that a reference on a question of law does not require the High Court to frame a substantial question of law. The party applying for reference must clearly state the question of law, and the High Court decides whether to refer it.

The appellant had formulated questions of law for reference in an additional affidavit, challenging the legality of the tribunal's order and the findings against them. The judgment highlighted the distinction between a question of law and a substantial question of law, emphasizing the unique requirements of Section 130A compared to the Civil Procedure Code Section 100. It was noted that the High Court does not need to frame a substantial question of law under Section 130A.

Ultimately, the Supreme Court set aside the impugned judgment and remitted the matter back to the High Court for fresh consideration, keeping all contentions open. The appeal was allowed without costs, indicating a correction in the interpretation and application of Section 130A of the Customs Act by the High Court.