Supreme Court upholds dismissal of review petition under Customs Act 1962

The Supreme Court dismissed the petitioner's review petition challenging the order dismissing their initial petition for non-compliance with Section 129-E of the Customs Act, 1962. Despite the petitioner's argument regarding a previous Supreme Court decision and the respondent's reliance on the mandatory nature of Section 129-E, the Court upheld the original order. The Court emphasized the removal of discretion in scaling down pre-deposits under the new regime, maintaining the deposit amount at 7.5% capped at Rs. 10 Crores. The appeal was ultimately dismissed, with the Court finding no error in the previous order and concluding that the petitioner's case lacked merit.

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Issues involved:
Review of order dismissing petitioner's petition due to non-compliance with Section 129-E of Customs Act, 1962.

Analysis:
The petitioner filed a petition seeking a review of the order dated 07.09.2020, which dismissed the petitioner's petition based on the provisions of Section 129-E of the Customs Act, 1962. The petitioner argued that the Court did not consider a previous Supreme Court decision in a similar case, making it impossible for the petitioner to deposit the required amount for filing an appeal. On the other hand, the respondent's counsel opposed the review, stating that the scope of review is limited and cited a recent Supreme Court judgment in Chandra Shekhar Jha V/s. Union of India, emphasizing that the provisions of Section 129-E are mandatory. The Supreme Court, in the mentioned case, held that the discretion to scale down the pre-deposit has been removed under the new regime, reducing the deposit amount to 7.5% but capping it at Rs. 10 Crores. The Court rejected the appellant's argument for the benefit of the proviso under the substituted provision, as it would create a legal inconsistency. Despite extending the compliance period by two months in the interest of justice, the appeal was ultimately dismissed.

The Court, after considering the submissions and the Supreme Court's decision in Chandra Shekhar Jha case, found no error in the previous order referring to Section 129-E of the Customs Act. The Court concluded that there was no apparent mistake in the order warranting a review, as the petitioner's case lacked merit. Therefore, the petition for review was dismissed.

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