Appeal to CESTAT - CBEC's Customs Manual 2023 - Customs

3. Appeal to CESTAT: 3.1 The Customs Excise and Service Tax Appellate Tribunal (CESTAT) has been constituted by the Central Government under Section 129(1) of the said Act. 3.2 In terms of Sections 129A(1) (appeal by any person aggrieved by such decision or order) or Section 129D(4) [departments appeal on review of order of Commissioner of Customs, by the Committee of Chief Commissioner] of the said Act any person may file appeal to CESTAT, if aggrieved by: (a) a decision or order passed by the Principal Commissioner of Customs or Commissioner of Customs as an adjudicating authority; or (b) an order passed by the Commissioner (Appeals) under section 128A. 3.3 Appeal cannot be filed before CESTAT and the Appellate Tribunal shall not have jurisdiction to decide any appeal in respect of any order referred to in clause (b), if the matter relates to: (i) import or export of goods as baggage; (ii) import goods loaded in a conveyance for importation into India, but which are not unloaded, not landed or short landed at place of destination; (iii) payment of drawback as provided in chapter X, and the rules made thereunder. 3.4 The CESTAT may refuse to admit an appeal in respect of an order where (i) the value of goods that have been confiscated without option having been given to the owner of the goods to pay a fine in lieu of confiscation under section 125; or (ii) in any disputed case, other than a case where the determination of any question having a relation to the rate of duty, value of goods for the purpose of assessment, difference in duty involved or the duty involved, is in issue or is one of the points in issue; or (iii) the amount of fine or penalty determined by such order, does not exceed two lakh rupees. 3.5 In terms of Sections 129A(2), the Committee of Commissioners of Customs may, if it is of opinion that an order passed by the Commissioner (Appeals) under section 128A, is not legal or proper, direct the proper officer to appeal on its behalf to the Appellate Tribunal against such order. PROVIDED that where the Committee of Principal Commissioners of Customs or Commissioners of Customs differs in its opinion regarding the appeal against the order of the Commissioner (Appeals), it shall state the point or points on which it differs and make a reference to the jurisdictional Principal Chief Commissioner of Customs or Chief Commissioner of Customs who shall, after considering the facts of the order, if is of the opinion that the order passed by the Commissioner (Appeals) is not legal or proper, direct the proper officer to appeal to the Appellate Tribunal against such order. 3.6 The limitation period for filing of appeal to CESTAT is 3 months from the date of communication of order being appealed against. The Tribunal may admit appeal after the expiry of this period if it is satisfied that there was sufficient cause for not presenting it within the limitation period. 3.7 In accordance with Sections 129A, 129B and 129C of the Customs Act, 1962 read with the Customs (Appeals) Rules, 1982 and the CESTAT (Procedure) Rules, 1982, the procedure for filing of appeal before CESTAT and disposal thereof is as follows: (a) The appeal is required to be filed in a Form No. CA 3 [Section 129A(1) of the said Act] and Form CA-5 [Section 129 D(4) of the said Act], prescribed under rule 6(1) and rule 7, respectively, of the Customs (Appeals) Rules, 1982. (b) On receipt of notice of appeal the respondent may file a memorandum of cross objection within 45 days of receipt of notice [Section 129A(4) of the said Act]. The memorandum of cross examination is required to be filed in Form CA 4, prescribed under rule 6 (2) of the Customs (Appeals) Rules, 1982. In the memorandum of cross objections, the respondent can agitate against any part of the order appealed against and such cross objections are disposed of by the Tribunal as if it were an appeal. Rules 15 and 15A of the CESTAT (Procedure) Rules, 1982 allow filing of reply to such appeal within a month by the respondent, and rejoinder to the reply within a month by the appellant. (c) The CESTAT shall give opportunity to the appellant to be heard, and on being shown sufficient cause, can give adjournment from hearing. In terms of proviso to Section 129B(1A) of the said Act, no such adjournment shall be granted more than three times to a party during hearing of the appeal. After hearing the case, CESTAT, pass such orders thereon as it thinks fit, confirming, annulling or modifying the decision or order appealed against or may refer / remand the case back to the authority which passed such decision or order with such directions as the Appellate Tribunal may think fit, for a fresh adjudication or decision. (d) The CESTAT may, at any time within six months from the date of the order, amend its order to rectify any mistake apparent from the record that is brought to its notice by the Principal Commissioner of Customs or Commissioner of Customs or the other party to the appeal. PROVIDED that an amendment which has the effect of enhancing the assessment or reducing a refund or otherwise increasing the liability of the other party shall not be made unless the Appellant Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard. (e) A prescribed fee is required to be paid for filing of appeal or rectification of mistake (ROM) or for restoration of appeal. The fee prescribed at present is (i) Rs 1000, where amount of duty, interest and penalty is upto Rs 5 lakh; (ii) Rs 5000, where amount of duty, interest and penalty is between Rs 5 lakh to Rs 50 lakh; (iii) Rs 10000, where amount of duty, interest and penalty is more than Rs 50 lakh; (iv) Rs 500 for any other purposes, including ROM or restoration of appeal. However, no fee is payable in case of appeal or ROM or restoration of appeal application by department. (f) The Appellate Tribunal, wherever possible, would hear and decide every appeal within a period of three years from the date of filing of appeal,