2019 (4) TMI 1564 - AT - Customs

Stay application - demand with interest - time limitation - monetary amount involved in the appeal - HELD THAT - The committee of Commissioners have held that the impugned order falls under clause (a) of Para 3 of the instruction dated 17/08/2011 introduced vide instruction dated 17/12/2015 - there is no constitutional validity of any of the provisions of the Act or Rules is under challenge before any of the Superior Courts in respect of the issue under dispute in the present appeal - the amount involved in this case is below the monetary limit of ₹ 10 lakhs. There are no reasons for staying of the impugned order as prayed by the appellant/Revenue - appeal disposed off.

Issues:
- Stay application filed by the Department for staying the operation of the impugned Order-in-Appeal passed by the Commissioner of Customs (Port).
- Appeal filed by the Revenue against the impugned Order.
- Cross objection filed by the Respondent-assessee.
- Monetary limit for filing departmental appeals before the CESTAT.
- Adjudication of demand and interest raised against the assessee.

Stay Application:
The Department filed a Stay Application seeking to stay the operation of the Order-in-Appeal passed by the Commissioner of Customs (Port). The Ld. DR for the Appellant/Revenue argued that the Commissioner (Appeals) did not point out any deficiency in the Adjudication Order and failed to rationalize how the demand was time-barred. He contended that the invoking of the extended period of 5 years in the Show Cause Notice was in accordance with Section 28(4) of the Customs Act, 1962. On the other hand, the Ld. Advocate for the Respondent-assessee reiterated the grounds of cross objection, emphasizing that the demand and interest raised against them was barred by limitation. The Ld. Commissioner (Appeals) allowed the appeal by setting aside the order passed by the Lower Adjudicating Authority, leading to the Stay Application and the appeal filed by the Revenue.

Monetary Limit for Filing Appeals:
The Committee of Commissioners observed that the disputed amount in the case was within the threshold limit set by the Board under the National Litigation Policy (NLP). However, they highlighted the instructions issued by the Board on filing departmental appeals, stating that appeals can be filed irrespective of monetary limits in specific circumstances, such as constitutional validity challenges, illegal notifications, or classification and refund issues. The Committee directed the Assistant/Deputy Commissioner of Customs to file an appeal before the CESTAT against the Order-in-Appeal, as it was considered an adverse order with larger consequences on similar cases. The impugned order was found to fall under a specific clause of the instructions, justifying the appeal despite the monetary limit.

Adjudication of Demand and Interest:
The Adjudicating Authority confirmed the demand and ordered for its recovery under section 28(4) of the Customs Act, 1962, along with interest. However, the Ld. Commissioner (Appeals) allowed the appeal filed by the assessee, citing that the demand and interest raised against them was time-barred. The Revenue appealed before the Tribunal against this decision, resulting in the dismissal of the appeal as it fell below the monetary limit for filing appeals. The Stay Application was rejected, and the Cross Objection filed by the Respondent/Assessee was disposed of accordingly.

This judgment addressed multiple issues, including the Stay Application, the monetary limit for filing appeals, and the adjudication of demand and interest raised against the assessee. The decision highlighted the importance of adhering to legal provisions and instructions while determining the eligibility for filing appeals, especially in cases with broader implications. The dismissal of the appeal and rejection of the Stay Application underscored the significance of compliance with statutory requirements and limitations in legal proceedings.

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