Customs Appeals Invalidated: Procedural Errors Expose Systemic Flaws in Assessment Order Processing Under Customs Act

CESTAT Mumbai addressed multiple customs appeal applications challenging assessment orders. The Tribunal found procedural irregularities in the original and appellate authorities' handling of 194 bills of entry. Determining that legal mandates were not followed, the Tribunal set aside the impugned order and remanded all appeals back to the original authority for proper adjudication in compliance with statutory requirements under the Customs Act, 1962.

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The Appellate Tribunal, CESTAT Mumbai, presided over by Hon'ble Mr. C J Mathew and Hon'ble Mr. Ajay Sharma, addressed 194 applications for 'out-of-turn' disposal of appeals related to order-in-appeal no. MUM-CUSTM-AMP-APP-762/2022-23. The initial appeal involved a challenge to the assessment of one bill of entry, while the other 193 bills were not addressed by the Commissioner of Customs (Appeals), Mumbai - III.The appellant's counsel argued that subsequent assessments, similar to the initial one under section 17(5) of the Customs Act, 1962, were completed without the required 'speaking order.' A consolidated appeal was filed, but the first appellate authority only addressed one assessment, citing the need for separate challenges for each assessment as per the Customs Act, 1962.The Tribunal found that the original authority had appended decisions to one order, contrary to section 17(5) of the Customs Act, 1962, and that the first appellate authority failed to ensure compliance with the law. The Tribunal noted that each assessment should be separately challenged, as per the Customs (Appeals) Rules, 1982, but this was not feasible due to the lack of separate assessments.The Tribunal concluded that the impugned order should have remanded all appeals for compliance with legal mandates. Consequently, the Tribunal set aside the impugned order and remanded the appeals back to the original authority for appropriate orders in accordance with the law and settled judicial decisions.

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