2018 (7) TMI 712 - HC - Customs

Jurisdiction Issue: Court Nullifies CESTAT Order Over Quorum Violation

The court addressed the challenge to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) order due to quorum non juris. The petitioners argued ... Principles of quorum non juris - Jurisdiction - power of Single Bench to decide the issues related to CHA - Held that:- Section 129 of the Act of 1962 empowers the Central Government to constitute an Appellate Tribunal to be called CESTAT consisting of such judicial members and technical members, as it thinks fit, to exercise powers and discharge the functions, conferred upon CESTAT, by the Act of 1962. Section 129C of the Act of 1962 deals with the procedure of the Appellate Tribunal. It stipulates that, the powers and functions of the Appellate Tribunal may be exercised and discharged by Benches constituted by the President amongst the members thereof. Subsection (2) requires, a Bench to be consisted of one judicial member and one technical member. Nothing is placed on record to suggest that, the single member passing the impugned was duly authorized by the President of CESTAT to hear and adjudicate the matter, sitting singly. In absence such authorization under Section 129C(4) of the Act of 1962, I am afraid that, the singe member had jurisdiction to decide the case and pronounce the impugned order. Existence of statutory alternative remedy against the impugned order under Section 130 of the Act of 1962 is not an absolute bar to the maintainability of the writ petition particularly when the petitioner has been able to substantiate that the impugned order was passed without jurisdiction and is a nullity. The impugned order is a nullity and is therefore quashed. Issues: Challenge to order of Customs, Excise and Service Tax Appellate Tribunal on the ground of quorum non juris.In this case, the petitioners challenge an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on the ground of quorum non juris. The petitioners argue that, as per Section 129C of the Customs Act 1962, a Division Bench consisting of a judicial and a technical member is required to consider and decide appeals related to Customs House Agent (CHA) license revocation/suspension matters. However, the impugned order was passed by a single member of the Tribunal, contrary to the direction of the President of CESTAT. The petitioners rely on a circular clarifying that CHA matters should be heard by a Division Bench. On the other hand, the respondents contend that CESTAT has the authority to adjudicate matters with a single member under Section 129 of the Act, and the order is appealable under Section 130. The key contention revolves around the interpretation of Sections 129(1) and 129C of the Act, which outline the constitution and procedure of the Appellate Tribunal.The legal analysis delves into the provisions of Sections 129 and 129C of the Customs Act 1962. Section 129 empowers the Central Government to constitute CESTAT with judicial and technical members to exercise powers conferred by the Act. Section 129C deals with the procedure of the Appellate Tribunal, requiring Benches to consist of a judicial and a technical member, except under certain circumstances specified in Subsection (4). Subsection (4) allows the President or authorized members to sit singly and dispose of cases based on specified criteria. In this case, the single member of CESTAT passed the impugned order related to a CHA without evidence of proper authorization to hear the matter alone. Without such authorization, the single member lacked jurisdiction to decide the case, rendering the impugned order a nullity.Furthermore, the judgment addresses the issue of statutory alternative remedy under Section 130 of the Act not being an absolute bar to the writ petition's maintainability. The court emphasizes that if the impugned order is passed without jurisdiction and is a nullity, the existence of an alternative remedy does not preclude the writ petition. Consequently, the court declares the impugned order as a nullity and quashes it, disposing of the writ petition without costs. The judgment highlights the importance of adherence to procedural requirements and proper authorization in judicial decision-making to maintain the integrity and legality of orders issued by tribunals like CESTAT.