Surety with direct customs liability can qualify as an aggrieved person; disputed bond execution requires evidence before appeal rejection.

A surety whose pecuniary liability is directly and prejudicially affected by an order against the importer is an "aggrieved person" entitled to appeal under Section 128 of the Customs Act, 1962, even if the adjudication order is addressed to another party. Where execution of the surety bond is disputed, the burden lies on the party asserting execution, and the controversy ordinarily requires evidence. The appellate authority should not reject such an appeal at the threshold on maintainability alone and must decide the factual dispute after giving opportunity to adduce evidence. The commentary states that the rejection of the appeal on maintainability was set aside and the matter remitted for fresh decision on merits.

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Issues: (i) Whether a person fastened with liability as a surety under a customs provisional assessment bond is an "aggrieved person" entitled to prefer an appeal under Section 128 of the Customs Act, 1962 against the order-in-original passed against the importer; (ii) Whether the dispute as to execution of the surety bond required evidence and therefore justified restoration of the appeal for fresh decision.

Issue (i): Whether a person fastened with liability as a surety under a customs provisional assessment bond is an "aggrieved person" entitled to prefer an appeal under Section 128 of the Customs Act, 1962 against the order-in-original passed against the importer.

Analysis: The expression "aggrieved person" is not rigid and must be construed with reference to the statute, the factual context, and the nature of prejudice suffered. A person is aggrieved where a legal burden is imposed or where his pecuniary or property rights are directly and prejudicially affected. Here, the petitioner was called upon to satisfy the liability arising from the order-in-original in the capacity of surety, so the order directly affected its property rights. The court held that the petitioner could not be denied appellate standing merely because the adjudication order was formally addressed to the importer. On the contrary, the petitioner suffered a legal grievance and was directly affected by the order.

Conclusion: The petitioner was an aggrieved person and was entitled to maintain an appeal under Section 128 of the Customs Act, 1962.

Issue (ii): Whether the dispute as to execution of the surety bond required evidence and therefore justified restoration of the appeal for fresh decision.

Analysis: The petitioner disputed execution of the bond and asserted that the signatures relied upon by the revenue were only as witnesses. The court held that when execution of a document is denied, the burden lies on the party asserting execution to prove it, and such proof ordinarily requires evidence. The appellate forum could not finally resolve that factual controversy without permitting the parties to adduce evidence. Accordingly, the dismissal of the appeal on the preliminary ground of maintainability could not stand.

Conclusion: The matter required evidentiary determination, and the appeal was restored to the Commissioner (Appeals) for decision afresh on merits after giving opportunity to lead evidence.

Final Conclusion: The rejection of the appeal on maintainability was set aside, the petitioner's appellate locus was affirmed, and the proceedings were remitted for a fresh decision on merits with the impugned recovery notices kept in abeyance meanwhile.

Ratio Decidendi: A person whose pecuniary liability is directly and adversely fastened by an adjudication order is an "aggrieved person" for purposes of appeal, and where execution of the underlying surety instrument is disputed, the controversy must be decided on evidence rather than by rejecting the appeal at the threshold.

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