Appeal under Section 130(1) Customs Act dismissed as valuation disputes barred from High Court jurisdiction

The HC dismissed the appeal filed by the revenue, holding it was not maintainable under Section 130(1) of the Customs Act, 1962. The Court found that appeals to the HC from the Appellate Tribunal are barred if they relate to valuation of goods for customs assessment. Since the appeal concerned valuation, it did not involve a substantial question of law as required. Consequently, the HC declined jurisdiction and dismissed the appeal.

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The Calcutta High Court dismissed the Department's appeal under Section 130 of the Customs Act, 1962, challenging the Customs, Excise and Service Tax Appellate Tribunal's order dated 21.11.2024. The Department contended that the respondent-importer evaded customs duty by not including freight charges in the assessable value under Section 14 read with Rule 10(2) of the Customs Valuation Rules, 2007. However, Section 130(1) bars appeals to the High Court from Tribunal orders concerning "the value of the goods for the purpose of assessment," unless a substantial question of law is involved. Since the appeal related to valuation, the Court held there was a "clear embargo in entertaining this appeal" and dismissed it as "not maintainable." The Court left the substantial questions of law "open" and noted the Department may pursue other remedies available under law.

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