Maintainability of Customs appeal affirmed where prior adjudication and LOP renewals preclude re adjudication of NFE demand.

Challenge concerned maintainability of an appeal before Commissioner (Appeals) Customs against a demand for Customs duty for alleged non-fulfilment of NFE norms despite prior adjudication by the Development Commissioner and renewals of the Letter of Permission. The note records that the appellate forum was prima facie appropriate for a Customs duty demand, that dismissing for forum was erroneous, and that, on the merits, prior adjudication, payment of penalty and subsequent LOP renewals precluded re adjudication of the NFE issue; the impugned order was therefore set aside and relief granted.

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Issues: (i) Whether the appeal filed by the appellant before the Commissioner (Appeals) Customs was maintainable and whether the demand of Customs duty for alleged non-fulfilment of NFE norms could be sustained in view of prior adjudication by the Development Commissioner and subsequent renewal of the Letter of Permission (LOP).

Analysis: The Tribunal examined the nature of the demand (Customs duty sought under Section 28 and penalty under Section 114 of the Customs Act, 1962) and the authority before whom the appeal was filed. It reviewed the record of prior proceedings by the office of the Development Commissioner, including the Order-in-Original dated 16.03.2017 adjudicating the NFE issue, imposition and payment of penalty, and subsequent renewals of the LOP up to 30.11.2023. The Tribunal held that, prima facie, the appellant was not at fault in filing the appeal before the Commissioner (Appeals) Customs since the demand related to Customs duty, and that the Commissioner (Appeals) Customs erred in dismissing the appeal on the ground of forum. On the merits, having considered the Development Commissioner's adjudication, payment of the imposed penalty and renewals of the LOP, the Tribunal found that the Revenue had no case to re-adjudicate the NFE issue by demanding Customs duty.

Conclusion: The impugned order is set aside and the appeal is allowed; the appellant is entitled to consequential relief.

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