Appellate jurisdiction in Special Economic Zone customs matters follows the competent territorial forum, with transfer required instead of dismissal.

Under Notification No. 16/2002-Cus. (N.T.), the Commissioner of Customs (Appeals), Chennai could hear only appeals from officers subordinate to the Commissioner of Customs (Port-Import and Export, Airport and Aircargo and Preventive), Chennai. Orders passed by the appraising officer in the Special Economic Zone fell within the territorial jurisdiction of the Commissioner of Central Excise, Chennai-IV, and by Notification No. 83/2004-Cus. (N.T.) the corresponding appellate powers vested in the jurisdictional Commissioner of Central Excise (Appeals). The lower appellate authority should therefore transfer, rather than dismiss, such appeals to the competent forum for decision on merits after hearing the appellants.

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Issues: Whether the Commissioner of Customs (Appeals) had jurisdiction to entertain the appeals arising from orders passed by the appraising officer in the Special Economic Zone, and whether the appeals ought to have been transferred to the jurisdictional Commissioner of Central Excise (Appeals) for decision on merits.

Analysis: Under Notification No. 16/2002-Cus. (N.T.) dated 7-3-2002, the Commissioner of Customs (Appeals), Chennai could hear appeals only against orders passed by officers subordinate to the Commissioner of Customs (Port-Import and Export, Airport and Aircargo and Preventive), Chennai. The original orders had been passed by the jurisdictional appraising officer in the Special Economic Zone, which fell within the territorial jurisdiction of the Commissioner of Central Excise, Chennai-IV. Notification No. 83/2004-Cus. (N.T.) dated 30-6-2004 conferred the powers of Commissioners of Customs (Appeals) on Commissioners of Central Excise (Appeals) within their respective jurisdiction, so the proper appellate forum was the jurisdictional Commissioner of Central Excise (Appeals). The lower appellate authority ought not to have dismissed the appeals outright, but should have transferred them to the competent appellate authority.

Conclusion: The dismissal by the Commissioner of Customs (Appeals) was set aside and the appeals were remanded to the jurisdictional Commissioner of Central Excise (Appeals) for decision on merits after granting a reasonable opportunity of hearing to the appellants.

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