2024 (6) TMI 1464 - HC - Customs

Appeals Dismissed: Tax Challenges on Crude Palm Oil Penalties Rendered Moot After Compliance with Original CESTAT Order

COMMISSIONER OF CUSTOMS (PREVENTIVE) Versus GILBERT D’LIMA

GHC disposed of three Tax Appeals under Section 130 of Customs Act, challenging CESTAT's order regarding carotene content in Crude Palm Oil. The Court ... Reliability of private laboratory report over government chemical examiners regarding the degradation of carotene content in Crude Palm Oil - grant of benefit under N/N. 21/2002-Cus. - respondents have deposited the amount of penalty in compliance of the Order-in-Original passed by the Commissioner of Customs, these appeals would not survive - HELD THAT:- All three Tax Appeals are disposed of as having become infructuous. The Gujarat High Court disposed of three Tax Appeals filed by the Revenue under Section 130 of the Customs Act, 1962, arising from CESTAT's order dated 4-4-2006. The appeals challenged CESTAT's reliance on a private laboratory report over government chemical examiners regarding the degradation of carotene content in Crude Palm Oil and the consequent grant of benefit under Notification No. 21/2002-Cus. The Tribunal had allowed the respondent's appeals, deleting penalties imposed under Section 112(b)(iii) of the Customs Act. The respondents had deposited the penalty amounts 'without prejudice' to end litigation. The Court held that since penalties were paid in compliance with the original orders, the appeals had become 'infructuous' and accordingly disposed of them without deciding the substantive questions.