2020 (3) TMI 532 - HC - Customs

Interpretation of Customs Act Section 25(4) Appeal: Notification Date Dispute

The court admitted the appeal to determine the correct interpretation of Section 25(4) of the Customs Act, 1962, and the effective date of the duty ... Maintainability of appeal - benefit of exemption - effective date of notification by the customs authority - Jurisdiction of HC u/s 130 of the Customs Act, 1962 - HELD THAT:- We are of the opinion that the question raised in this appeal does not have any connection with the rate of duty. Whether the notification was applied from the date of its publication by the DGFT or from the date of its publication by the customs under Section 25[4] of the said Act the rate of duty remained the same. The only controversy is the date from which that rate of duty was applicable. If that is the question, this court has the jurisdiction to hear this appeal. This appeal is admitted on the following question:- Whether the order of the learned tribunal has not correctly interpreted sub-section 4 of Section 25 of the Customs Act, 1962 and the effective date of the subject exemption notification? List the appeal for hearing on 29th April, 2020. Issues:Interpretation of Duty Free Credit Entitlement (DFCE) certificates and duty exemption entitlement based on DGFT notification date.Jurisdiction of the court under Section 130 of the Customs Act, 1962 regarding appeals related to rate of duty or value of goods for assessment purposes.Analysis:The judgment addresses a dispute concerning the entitlement to duty exemption based on DFCE certificates issued by the DGFT. The respondent claims duty exemption from the date of the DGFT notification, while the appellant argues that the entitlement starts from the customs authority's notification date. The central issue revolves around the interpretation of Section 25(4) of the Customs Act, 1962, which states that any exemption notification is effective from the date of its publication in the Official Gazette by the Central Government. This discrepancy in notification dates forms the crux of the legal argument.Regarding the jurisdiction of the court under Section 130 of the Customs Act, 1962, the respondent's counsel contends that the court lacks jurisdiction to entertain the appeal due to its relation to the rate of duty. Citing a Supreme Court decision, the counsel argues that the appeal does not fall under the specified categories for direct appeal to the court, as it does not directly involve questions related to the rate of duty, valuation of goods, or classification under the Tariff. The court, however, finds that the issue at hand does not pertain to the rate of duty itself but rather to the effective date of the duty exemption notification, thus falling within its jurisdiction for adjudication.Consequently, the court admits the appeal to determine whether the tribunal correctly interpreted Section 25(4) of the Customs Act, 1962, and the effective date of the exemption notification. The court dispenses with the issuance and filing of a notice of appeal, instructing the appellant to submit informal paper books by a specified date for the upcoming hearing. Additionally, the court sets a hearing date for the appeal and disposes of the stay application related to the case.