2026 (1) TMI 907 - HC - Customs

Appeals u/s 130 of Customs Act must be filed in Supreme Court u/s 130E, not High Court

Whether appeals under Section 130 of the Customs Act lie before the HC or must be instituted in the SC under Section 130E: court interpreted Sections 130 ... Scope of Section 130 - Procedural limitation period - forum conveniens - substantial questions of law by filing the appeals u/s 130 - HELD THAT:- On perusal of Sections 130 and 130E of the Customs Act, 1962 in our opinion, this appeal should be preferred before the Hon’ble Supreme Court under Section 130E of the Act. Appeals and the connected applications preferred by the department is dismissed. Issues: (i) Whether the appeals filed under Section 130 of the Customs Act, 1962 should have been preferred before the High Court or the Supreme Court; (ii) Whether the delay in filing the appeals (455 days) should be condoned.Issue (i): Whether the appeals filed under Section 130 ought to be entertained by the High Court or are required to be preferred to the Supreme Court under Section 130E.Analysis: The statutory provisions governing appeals under Chapter (Sections 130 and 130E) were examined to determine the proper forum for appeals involving questions including determination of taxability, rate of duty, or related matters. The provisions identifying the class of orders and appeals falling under Section 130E and the scope of appeals to the High Court under Section 130 were applied to the facts of the present appeals to determine the appropriate appellate forum.Conclusion: The appeals should be preferred before the Supreme Court under Section 130E of the Customs Act, 1962; they are not maintainable before the High Court under Section 130.Issue (ii): Whether the delay of 455 days in filing the appeals should be condoned.Analysis: The explanation for the delay was considered against the statutory provision permitting admission of appeals after the prescribed period where sufficient cause is shown. The reasons advanced for the delay were evaluated for sufficiency.Conclusion: The delay is condoned; the applications for condonation are allowed.Final Conclusion: The departmental appeals are not maintainable before the High Court and ought to be pursued before the Supreme Court under Section 130E; notwithstanding condonation of delay, the appeals and connected applications filed before the High Court are dismissed, leaving the department free to prefer appropriate proceedings to the Supreme Court.Ratio Decidendi: Appeals that fall within the class described by Section 130E of the Customs Act, 1962 must be pursued to the Supreme Court under that provision rather than under Section 130 to the High Court.