2000 (10) TMI 661 - AT - Customs

Tribunal dismisses duty drawback appeals citing lack of jurisdiction under Customs Act Section 129A.

The Tribunal lacked jurisdiction to adjudicate appeals related to the recovery of duty drawbacks, as excluded by Section 129A of the Customs Act. ... Appeal relating to recovery of drawback erroneously paid - Jurisdiction Issues Involved:1. Competence of the Tribunal to adjudicate the case.2. Recovery of duty drawbacks erroneously paid.3. Attachment of properties for recovery of government dues.4. Jurisdictional limitations under Section 129A of the Customs Act.Detailed Analysis:1. Competence of the Tribunal to adjudicate the case:The primary issue raised was whether the Tribunal had the competence to adjudicate the matters presented before it. The Tribunal examined the scope of its jurisdiction under Section 129A of the Customs Act, 1962. The Tribunal noted that the Act clearly delineates the types of orders that fall within its jurisdiction, emphasizing that the Tribunal does not have jurisdiction over orders related to the payment of drawbacks as provided in Chapter X of the Act and the rules made thereunder.2. Recovery of duty drawbacks erroneously paid:The case involved three partnership firms that had claimed duty drawbacks which were later found to be erroneously paid. The Jurisdictional Assistant Commissioner confirmed the recovery of these amounts, along with 20% interest, under Rule 16 of the Customs and Central Excise Duties (Drawback) Rules, 1995. The Tribunal observed that the recovery of erroneously paid drawbacks is covered under the provisions of Chapter X of the Customs Act, specifically under Section 75A, which deals with interest on drawbacks not recovered in time.3. Attachment of properties for recovery of government dues:Following the failure to repay the erroneously paid drawbacks, the Jurisdictional authority issued notices of attachment under Rules 9 and 10 of the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995. These rules are derived from Section 142 of the Customs Act, which provides for the recovery of sums due to the government. The Tribunal noted that the orders of attachment were a direct consequence of the recovery provisions under Chapter X.4. Jurisdictional limitations under Section 129A of the Customs Act:The Tribunal discussed the jurisdictional limitations imposed by the first proviso to sub-section (1) of Section 129A, which restricts the Tribunal from entertaining appeals related to the payment of drawbacks. The Tribunal emphasized that the phrase 'payment of drawback' includes not only the grant of drawback but also the recovery of drawbacks erroneously paid. This interpretation aligns with the harmonious construction of the statutory provisions, ensuring that the Tribunal does not overstep its jurisdiction.Conclusion:The Tribunal concluded that it lacked jurisdiction to adjudicate the appeals related to the recovery of duty drawbacks, as these matters fall within the exclusion specified in the first proviso to Section 129A of the Customs Act. Consequently, the appeals and applications were dismissed. The Tribunal acknowledged the predicament faced by the appellants, noting that the Government of India had also declined jurisdiction. However, the Tribunal reiterated that it could not provide a remedy beyond its statutory mandate.Separate Judgment by G.N. Srinivasan:Member (J) G.N. Srinivasan concurred with the decision, adding that the Tribunal, as a statutory body, must adhere strictly to the jurisdictional boundaries set by the legislature. He emphasized that the Tribunal cannot entertain matters explicitly excluded by the statute, regardless of the practical difficulties faced by the appellants. He suggested that the appellants seek remedy before an appropriate forum, although he did not specify what that forum might be.