Court lacks jurisdiction over appeal challenging customs duty exemption for printing ink imports on currency notes.

The High Court held that it lacked jurisdiction to entertain the appeal challenging the Customs, Excise and Service Tax Appellate Tribunal's order on the exemption from customs duty on printing ink imports for currency notes. The Court determined that the appeal directly pertained to the rate of customs duty under Notification 40/2006, directing the appellant to approach the Supreme Court under Section 130E of the Customs Act, 1962 for further adjudication.

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Issues:
1. Interpretation of Notification 40/2006 for exemption from customs duty on import of printing ink.
2. Jurisdiction of High Court to entertain the appeal under Section 130 of the Customs Act, 1962.

Issue 1 - Interpretation of Notification 40/2006:
The appellant challenged the order of the Customs, Excise and Service Tax Appellate Tribunal, claiming that the respondent was not entitled to exemption from customs duty on the import of printing ink (OVI) used for printing currency notes. The appellant argued that the exemption was only applicable to printing ink used in exported products, specifically rice packed in printed polypropylene bags. The respondents disputed this claim, stating that the exemption applied to the import of printing ink for currency notes.

Issue 2 - Jurisdiction of High Court:
The respondents contended that the appeal under Section 130 of the Customs Act, 1962 was not maintainable as it related to a question concerning the rate of customs duty. Citing a previous decision, the respondents argued that the High Court did not have the jurisdiction to adjudicate on issues related to the rate of duty. The High Court, after examining the relevant legal provisions and precedents, concluded that the question raised in the appeal directly related to the determination of the rate of customs duty under Notification 40/2006. Therefore, the High Court held that it lacked jurisdiction to entertain and decide the appeal, directing the appellant to approach the Supreme Court under Section 130E of the Customs Act, 1962.

In summary, the High Court's judgment focused on the interpretation of Notification 40/2006 regarding customs duty exemption for printing ink imports and the jurisdictional limits of the High Court in cases involving questions related to the rate of customs duty under the Customs Act, 1962.

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