2010 (2) TMI 1230 - HC - Customs

High Court directs urgent review of Tribunal's order, emphasizing timely decision on classification issue.

The High Court set aside the Tribunal's order and directed the Tribunal to hear the appeals on merits and make a decision within six weeks. The Court ... - Issues involved: Interpretation of Customs Act, 1962 u/s 130, suspension of license for Custom House Clearing Agent, influence of observations made by High Court on Tribunal's decision-making process.Interpretation of Customs Act, 1962 u/s 130:The High Court heard a writ petition challenging the order of the Custom, Excise and Service Tax Appellate Tribunal (the Tribunal) remanding the matter to the adjudicating authority to determine whether the imports were television screens or flat panel displays for automatic data processing. The petitioner had previously appealed under Section 130 of the Customs Act, 1962 against the Tribunal's order suspending their license as a Custom House Clearing Agent. The High Court emphasized that observations made in their previous decision were solely for the purpose of disposing of the issues in that appeal and should not influence the Tribunal's decision-making process.Suspension of license for Custom House Clearing Agent:Despite the High Court's explicit instructions that its observations should not impact the Tribunal's decision, the Tribunal appeared to have been influenced by the High Court's previous remarks. The High Court criticized the Tribunal for not coming to a conclusion on the classification of imported goods and other raised issues, instead of simply remanding the matter to the adjudicating authority. The petitioner had been facing suspension of their license since January 2007, and the High Court deemed it prejudicial to relegate the petitioner to the stage of adjudication without a proper decision from the Tribunal.Influence of High Court's observations on Tribunal's decision-making process:The High Court set aside the Tribunal's order and directed the Tribunal to hear the appeals on merits and make a decision based on the available record within six weeks. The High Court emphasized the urgency of the matter due to the serious prejudice faced by the petitioner. Both parties agreed not to seek adjournments before the Tribunal, and no coercive steps were to be taken until the Tribunal's final decision.