2003 (11) TMI 597

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....ellate Tribunal, South Zonal Bench (hereinafter referred to as 'CEGAT') on the question "whether penalty under Rule 173Q of CER 1944 is relatable to non-demanding of interest under Section 11AB?" 2. Sri Sharma, learned Addl. Central Government Standing Counsel appearing for the Revenue strongly urged that the question raised in this application being purely a question of law, an order is required to be made by this Court directing the Tribunal to refer the said question to this Court. 3. However, Sri Shivadass, learned counsel appearing for the respondent while countering the submissions of Sri Sharma that the question formulated seeking reference from the Tribunal is not a question of law and the finding recorded by the Tri....

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....  Whether the reference sought under Section 35H of the Act from CEGAT is not maintainable? (ii)    Whether the reference sought from the Tribunal with regard to the question raised in this application is liable to be rejected on the ground that there is no question of law involved? 5. So far as the first question is concerned, we are of the view that the application filed is not maintainable in law. While considering the provisions under Section 130 of the Customs Act, which is in para materia with Section 35H of the Act, the Hon'ble Supreme Court has taken the view that the question relating to rate of duty and value of goods for the purposes of assessment are questions that squarely fall within the me....

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....same or similar goods. Since the decisions of CEGAT in such matters would have wide application they are, by the terms of the statute, to be rendered by Special Benches. The phrase "relation to" is, ordinarily, of wide import but, in the context of its use in the said expression in Section 129C, it must be read as meaning a direct and proximate relationship to the rate of duty and to the value of goods for the purposes of assessment. 11. It will be seen that sub-section (5) uses the said expression 'determination of any question having a relation to the rate of duty or to the value of goods for the purposes of assessment' and the Explanation thereto provides a definition of it 'for the purposes of this sub-section'. The Explan....