2010 (4) TMI 473 - HC - Customs

Rate of Interest- Penalty- Tribunal order setting aside original order and remanding matter to adjudicating authority. Appeal challenging such setting aside of interest and penalty. Held that- interest and penalty required to be set aside consequent to setting aside of original order. Interest and penalty can be levied by adjudicating authority if found necessary while passing order after remand.

Summary

Issues:
Challenge to order of remand by CESTAT, Setting aside of penalty and interest, Applicability of Section 130E of the Customs Act, 1962, Dispute over rate of duty, Maintainability of the appeal.

Analysis:
The High Court addressed the appeal challenging the order of remand by CESTAT, which remitted the matter to the adjudicating authority for recalculation of duty liability, considering export obligations and customs duty rate. The Tribunal also set aside the penalty and interest on the Managing Director. The substantial questions of law included non-fulfillment of export obligation, immunity under SICA, and the applicable rate of duty. The respondent argued the appeal's non-maintainability under Section 130E of the Customs Act, stating that disputes on duty rates should go to the Supreme Court. The revenue's counsel emphasized the grievance regarding the interest and penalty set aside by the Tribunal.

The High Court opined that when the Tribunal remands a matter, setting aside the original order, any interest or penalty levied should also be set aside. It clarified that post-remand, the adjudicating authority could impose interest and penalty if warranted by violations. As the dispute mainly concerned the duty rate, the Court deemed the appeal unnecessary. Consequently, the appeal was dismissed as not maintainable without addressing the substantial questions of law.