2025 (12) TMI 758 - HC - Customs

Writ on resistance wire classification dismissed as alternate CESTAT remedy u/s 129 of Customs Act available

HC dismissed the writ petition challenging appellate orders on classification of imported resistance wires, holding it non-maintainable due to the ... Maintainability of petition - availability of alternate and efficacious remedy available before the CESTAT - Classification of imported resistance wires - HELD THAT:- It is satisfied that, as against the orders in Appeal, the Petitioner has an alternate and efficacious remedy available before the CESTAT under the provisions of Section 129 of the Customs Act. Therefore, it would not be appropriate to bypass such statutory remedies and entertain this Petition. The Petitioner’s contention that he has already instituted four Appeals is not a valid justification for not exhausting alternate remedies. The four Appeals that the Petitioner refers to were against the Orders-in-Original. Those appeals were dismissed, and the Petitioner now challenges the orders-in-appeal. As against these orders, the law provides a remedy to the CESTAT. It is only proper that the Petitioner approaches the Appellate Authority, i.e. the CESTAT, as provided under Section 129 of the Customs Act. In the case of Oberoi Construction Ltd. v. Union of India [2024 (11) TMI 588 - BOMBAY HIGH COURT], this Court has considered the law on exhaustion of alternate remedies. To a similar effect, the orders made by this Court, wherein this Court was of the view that these are not extraordinary cases in which the Court should circumvent or short-circuit the statutory remedy to entertain the petition. Reference also made to a recent decision of the Hon’ble Supreme Court in the case of Rikhab Chand Jain Vs. Union of India & Ors [2025 (11) TMI 1377 - SUPREME COURT], where the Hon’ble Supreme Court held that when the appellant has an efficacious remedy, he ought not to indulge in the misadventure of invoking the writ jurisdiction of the High Court. Therefore, by adopting the reasoning in the said decisions and by following the precedents referred to therein, it is declined to entertain this Petition. However, it is left to the Petitioner to appeal to the CESTAT against the impugned orders, subject to compliance with the prescribed legal formalities. Petition disposed off. 1. ISSUES PRESENTED AND CONSIDERED 1.1 Whether the Court should entertain a writ petition challenging orders-in-original and orders-in-appeal on customs classification when an alternate statutory appellate remedy before the CESTAT under Section 129 of the Customs Act is available. 1.2 Whether alleged violation of fundamental rights, the petitioner's health difficulties, and pendency of prior appeals against orders-in-original constitute exceptional circumstances justifying bypass of the alternate statutory remedy. 1.3 Consequential directions regarding the petitioner's right to approach the CESTAT and treatment of limitation for such appeals. 2. ISSUE-WISE DETAILED ANALYSIS Issue 1: Availability of efficacious alternate remedy before CESTAT and maintainability of writ petition Legal framework (as discussed) 2.1 The Court notes that against the impugned orders-in-appeal, a statutory appellate remedy lies to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) under Section 129 of the Customs Act. 2.2 The Court refers to earlier decisions, including a decision in a writ petition concerning Oberoi Construction Ltd. and another batch of writ petitions, reiterating the principle that where an efficacious alternate remedy exists, writ jurisdiction should not ordinarily be invoked. 2.3 The Court relies on a recent decision of the Supreme Court (Rikhab Chand Jain v. Union of India & Ors), holding that when an efficacious remedy is available, a litigant ought not to invoke writ jurisdiction as a 'misadventure'. Interpretation and reasoning 2.4 The petition involves a dispute regarding the correct customs classification of imported resistance wires, which, according to the Court, would require investigation and technical determination regarding the appropriate tariff classification. 2.5 The Court observes that such classification issues are 'best addressed' by specialised tribunals like CESTAT, which are constituted under the Customs Act precisely for these purposes. 2.6 The Court finds that the petitioner has an 'alternate and efficacious remedy' before CESTAT against the impugned orders-in-appeal, and that it would not be appropriate to bypass this statutory remedy. 2.7 The Court emphasizes adherence to the 'normal practice of exhaustion of alternate remedies provided under the statute' and finds no adequate reason to depart from that practice in this case. Conclusions 2.8 The Court declines to entertain the writ petition on the ground that an efficacious alternate statutory remedy exists before CESTAT under Section 129 of the Customs Act. 2.9 The merits of the classification dispute, including the petitioner's reliance on BIS information, standards, and charts, are not adjudicated and are left to be considered by CESTAT in the first instance. Issue 2: Whether alleged violation of fundamental rights, health difficulties, and prior appeals justify bypassing alternate remedy Interpretation and reasoning 2.10 The petitioner contended that his fundamental rights were violated and also highlighted his health difficulties and the fact that he had already filed four appeals against the orders-in-original. 2.11 The Court records that, apart from the bare contention regarding violation of fundamental rights, 'no convincing grounds' have been made out to persuade it to deviate from the normal rule requiring exhaustion of statutory remedies. 2.12 The Court notes that the four appeals already filed were against the orders-in-original, which have been dismissed, and that the present challenge is to the orders-in-appeal, for which a further remedy to CESTAT is specifically provided by law. 2.13 The Court holds that the mere fact that the petitioner has already instituted appeals against the original orders is not a valid justification for bypassing the further appellate remedy available against the appellate orders. Conclusions 2.14 The circumstances invoked by the petitioner, including alleged violation of fundamental rights, his health difficulties, and prior appeals against orders-in-original, do not constitute exceptional or extraordinary grounds to circumvent the alternate appellate remedy before CESTAT. 2.15 The Court refuses to exercise writ jurisdiction in derogation of the statutory appellate mechanism. Issue 3: Directions regarding recourse to CESTAT and limitation Interpretation and reasoning 2.16 While declining to entertain the writ petition, the Court recognises that the petitioner appeared in person, expressed health difficulties, and was under a bona fide impression that approaching the High Court was the appropriate remedy. 2.17 To balance adherence to the alternate remedy rule with fairness to the petitioner, the Court issues directions intended to protect the petitioner from being non-suited on limitation if he promptly avails the proper appellate remedy. Conclusions 2.18 The petitioner is granted liberty to file appeals before CESTAT against the impugned orders-in-appeal, subject to compliance with all prescribed legal formalities. 2.19 If such appeals are filed within six weeks from the date of the order, CESTAT is directed to consider them on their own merits and in accordance with law, 'without adverting to the issue of limitation', in view of the petitioner's status as a party in person, his health difficulties, and his bona fide impression regarding the appropriate remedy. 2.20 If no appeals are filed within six weeks, any subsequent delay will have to be explained by the petitioner, and the protection regarding limitation will not automatically apply. 2.21 All contentions of all parties, including those raised in the petition or urged at the hearing, are expressly kept open to be decided by CESTAT in the first instance. 2.22 The petition is disposed of with liberty in the above terms, with no order as to costs.