Customs Appeal Remanded: HC Orders Fresh Hearing at CESTAT, Emphasizes Independent Case Evaluation

Delhi HC set aside CESTAT's order in a customs appeal, directing CESTAT to decide the case on merits without being influenced by a pending Supreme Court decision. The court followed its previous precedent of remanding similar cases back to CESTAT to assess jurisdictional issues, specifically regarding the competence of Customs Commissioner/DRI in issuing show cause notices.

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The Delhi High Court, comprising Hon'ble Mr. Justice Vibhu Bakhru and Hon'ble Mr. Justice Purushaindra Kumar Kaurav, reviewed an appeal challenging the Customs Excise and Service Tax Appellate Tribunal's (CESTAT) order dated 06.07.2017 in custom appeal No. C/50354/2016. The CESTAT had previously set aside an order by the Commissioner of Customs and remanded the matter, pending a Supreme Court decision on a related jurisdictional issue in Mangali Impex Ltd. v. Union of India.The High Court noted that similar appeals had been disposed of by setting aside CESTAT's orders and remanding the cases back to CESTAT for a decision on merits, including jurisdictional questions, without being influenced by the Mangali Impex decision, which is under Supreme Court review. Specifically, in PR. Commissioner of Customs v. Kunal Lalani, the court directed CESTAT to assess the competence of the Commissioner of Customs (Preventive)/Directorate of Revenue Intelligence (DRI) to issue show cause notices.In line with this precedent, the High Court set aside the impugned order and directed CESTAT to decide the appeal on its merits, including the jurisdictional issue, uninfluenced by the Mangali Impex case. The court clarified it had not expressed any opinion on the merits of the disputes. Additionally, the appellant's counsel stated that the department would ascertain the status of cases against other noticees and pursue similar appeals if necessary.

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