2011 (12) TMI 186 - HC - Customs

Customs Act Appeal Falls under Section 130E | Appellant Granted Liberty to Approach SC

The Court concluded that the appeal fell within the scope of Section 130E of the Customs Act, 1962, allowing appeals to the SC in specific circumstances. ... Appeal u/s 130E of Customs Act, 1962 - appeal relates to improper availment of export DEPB credit - Supreme Court remanded the matter to CEGAT for fresh hearing – Held that:- Whatever may be the ultimate object but the fundamental adjudication has to be made and has indeed been made by CEGAT on the valuation. Unless the valuation of the goods is arrived at the other relief in relation to rate of duty involved herein cannot be granted. We think that the instant appeal falls within subject as mentioned in Section 130E of the Customs Act, 1962. In view of the aforesaid reason we are not inclined to admit the appeal and we grant liberty to the appellant to approach the Hon'ble Apex Court for the appropriate remedy. Issues involved:Appealability under Section 130E of the Customs Act, 1962Analysis:The judgment dealt with the question of appealability under Section 130E of the Customs Act, 1962. Mr. Mehta raised concerns regarding the appeal's competency based on the language of the said Act. He argued that the appeal related to the improper availment of export DEPB credit and not to the valuation or determination of any rate. On the other hand, Mr. Roychowdhury contended that the ultimate aim was to ascertain the lawful allowance of the credit facility. The matter had been previously dealt with by the Commissioner of Customs and then taken to the Supreme Court, which remanded it for fresh hearing as the CEGAT did not address the issue as required.The key contention revolved around the valuation of goods, with the department alleging that the valuation was based on the declared invoice value rather than the market value, resulting in a significant difference. The Court emphasized that the fundamental adjudication on valuation had been made by CEGAT, and unless the valuation was determined, other reliefs regarding the rate of duty could not be granted.Ultimately, the Court concluded that the appeal fell within the scope of Section 130E of the Customs Act, 1962, which allows appeals to the Supreme Court in specific circumstances. Therefore, the Court declined to entertain the appeal and granted the appellant the liberty to approach the Supreme Court for the appropriate remedy. The appeal and application were disposed of, with all parties instructed to act on a signed copy of the order.