TaxTMI 
TaxTMI 
2026 (6) TMI 24
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....by the Special Intelligence and Investigation Branch. As per the investigation conducted, it was found that the importer had sent the imported oats to the job workers, who had undertaken three types of job work on the imported oats and thereby, the goods sold assumed a different character and therefore, the respondent did not fulfil the conditions specified in paragraph 2 of the Notification No.102/2007. Since the imported goods were not sold as such without being subjected to any further process, an Order-in-Original dated 09.05.2017 came to be passed by the Assistant Commissioner of Customs to the following effect: "1. I hold that M/s Pepsico India Holding (P) Ltd. is not eligible to claim the refund of Rs.5,42,34,576/- being the SAD claimed by them vide their refund claims listed in the annexure to the Show Cause Notice C.No.VIII/20/112/2017- RF dated 07.02.2017 in as much as they have diverted the imported Oats for further manufacture of excisable Oats and exempted Oats products by a other manufacturers and therefore I reject the claim of refund Rs.5,42,34,576/. 2. I hold that refund claim in respect of Bills of Entry No. 3709692/04.11.2013; 3716441/05.11.2013....
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....tion has a relation to the rate of duty of customs or the value of the goods for the purposes of assessment. Therefore, it was contended that the appeal will only lie before the Apex Court under Section 130E of the Act. 6. Considering the preliminary objection raised on the side of the respondent, this Court wanted to deal with that issue at the outset since it touches upon the jurisdiction of this Court. 7. The exemption notification that is involved in the present case is Notification No.102/2007-CUS dated 14.09.2007. This notification exempts the goods from the whole of additional duty of customs leviable under sub-section (5) of Section 3 of the Customs Tariff Act, when imported into India for subsequent sale, if the conditions stipulated in paragraph 2 of the notification are fulfilled. 8. The CESTAT, while setting aside the Order-in-Original passed by the Assistant Commissioner and the order in appeal passed by the Commissioner (Appeals), came to the conclusion that the respondent is entitled for exemption. 9. The learned counsel for the respondent, by placing reliance upon the judgment of the Apex Court in Navin Chemicals Mfg. and Trading Co. Ltd. v. Collector of....
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.... the Customs & Central Excise Laws Amendment Act, 1988 and it reads thus: "(5) The provisions of this section shall not apply to any decision or order in which the determination of any question having a relation to the rate of duty or to the value of goods for the purposes of assessment of any duty is in issue or is one of the points in issue. Explanation - For the purposes of this subsection, the determination of a rate of duty in relation to any goods or valuation of any goods or valuation of any goods for the purposes of assessment of duty includes the determination of a question.- (a) relating to the rate of duty for the time being in force, whether under the Customs Tariff Act, 1975 (51 of 1975), or under any other Central Act providing for the levy and collection of any duty of customs, in relation to any goods on or after the 28th day of February, 1986; or (b) relating to the value of goods for the purposes of assessment of any duty in cases where the assessment is made on or after the 28th day of February, 1986; or (c) whether any goods fall under a particular heading or sub-heading of the First Schedule or the Second Schedule to....
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....r not an appeal should be heard by a Special Bench of CEGAT, whether or not a reference by CEGAT lies to the High Court and whether or not an appeal lies directly to the Supreme Court from a decision of CEGAT : does the question that requires determination have a direct and proximate relation, for the purposes of assessment, to the rate of duty applicable to the goods or to the value of the goods." 10. The above judgment of the Apex Court brings out the distinction between Section 130 and Section 130E of the Act which provides for appeal to the High Court and to the Supreme Court from the order passed by the CESTAT. In a case which involves determination of any question having relation to the rate of duty of customs or to the value of goods for the purposes of assessment, such appeal can be filed only before the Supreme Court. The above judgment also gives a clarity where the subject matter of challenge touches upon an exemption notification and if that exemption notification relates directly or proximately to the rate of duty applicable for the purposes of assessment, that will also fall within the ambit of Section 130E of the Act and consequently, the appeal would lie only bef....