2016 (7) TMI 358 - AT - Customs

Customs Duty Appeal Dismissed due to Proprietor's Death

The appeal challenging the order-in-appeal upholding the decision of the lower authority regarding non-compliance with mutilation norms specified by the ... Recovery of dues - Since the appellant is the sole proprietor and this sole proprietor has died, therefore no recoveries of duties can be effected from his legal representatives. - department cannot proceed against legal representatives of the deceased. Issues:1. Upholding of order-in-appeal by Commissioner (Appeals)2. Non-compliance with norms for mutilation specified by Custom House3. Legal implications of the death of the sole proprietor on the caseAnalysis:1. The judgment addresses the challenge against the order-in-appeal dated 24.4.2006, where the Commissioner (Appeals) upheld the decision of the lower authority and dismissed the appeal. The case revolves around the appellant's orders for supply of old synthetic rags, with majority being mutilated upon arrival from the foreign supplier. The Cochin Custom House refused clearance, citing non-compliance with mutilation norms specified in Public Notice No. 86/94. Despite a High Court judgment granting time for clearance, the goods were auctioned due to non-compliance, leading to a show-cause notice and subsequent confirmation by authorities.2. During the proceedings, it was noted that the appellant, a sole proprietorship, had its proprietor pass away. The absence of any representative for the appellant was highlighted, with the learned A.R. informing about the proprietor's demise and providing the death certificate. Citing the case of Neera Nagpal Vs CCE & CC Goa, it was emphasized that no duties can be recovered from the legal representatives of a deceased sole proprietor. Consequently, the judgment concludes that due to the death of the sole proprietor, the appeal stands abated, and is thus dismissed.This detailed analysis of the judgment from the Appellate Tribunal CESTAT BANGALORE highlights the legal intricacies surrounding the issues raised in the case and the subsequent implications of the sole proprietor's demise on the legal proceedings.