2025 (8) TMI 1163 - SCH - Customs

Appeals under Section 130 of the Customs Act are maintainable; dismissal for want of maintainability set aside, appeals restored

The SC held that appeals under section 130 of the Customs Act are maintainable before the HC, following precedent, and that the HC's earlier dismissal for ... Maintainability of appeal(s) before the High Court of Karnataka at Bangalore u/s 130 of the Customs Act, 1962 - whether the assessee has breached the conditions which were imposed by the notification for getting exemption from payment of the custom duty? - HELD THAT:- In the light of the decision of this Court in Motorola India Limited [2019 (9) TMI 229 - SUPREME COURT] the appeal against the order of CESTAT would lie before the High Court under Section 130 of the Customs Act, 1962. It is deemed appropriate to invoke extraordinary powers under Article 142 of the Constitution of India and, accordingly, direct that the Order of the High Court dismissing those appeals, as not maintainable, shall stand set aside and those appeals shall stand restored to their original number on the file of the High Court and would be decided in accordance with law. The power under Article 142 is invoked as the appellant otherwise would be rendered remediless. Appeal dispsoed off. Appeals under Section 130E of the Customs Act, 1962 challenged a CESTAT order. The High Court had dismissed earlier appeals under Section 130 as not maintainable, opining that appeal would lie to this Court. Citing Commissioner of Customs, Bangalore-1 v. Motorola India Limited, (2019) 9 SCC 563, the Court noted that 'where the only question involved is whether the assessee has violated the conditions of exemption notification by not utilizing the imported materials for manufacturing of the declared final product and is therefore liable for payment of duty, interest and penalty, appeal would lie to the High Court under Section 130 of the Customs Act, 1962, as no question either with regard to determination of rate of duty, or relating to valuation of goods, arises for the purposes of assessment.' As no issue of classification, rate of duty or valuation arises here, the appeals fall within that principle. Invoking Article 142, the Court set aside the High Court's order, restored the Section 130 appeals to their original numbers, allowed reconstitution of records if weeded out, and kept all contentions open for decision by the High Court.