TaxTMI 
TaxTMI 
2026 (9) TMI 573
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....w, the Hon'ble CESTAT erred in holding that the salvage equipment imported under transshipment permits was used as 'stores' under Section 88 of the Customs Act, 1962, despite evidence indicating that the equipment was deployed on coastal vessels and not on the foreign-going vessel MSC Chitra, and whether territorial destination is irrelevant for the applicability of exemption under Section 88? B. Whether, in the facts and circumstances of the case and in law, the Hon'ble CESTAT erred in setting aside the demand of duty under Section 28 read with Section 12, and the confiscation and penalty orders under Sections 111(n), 111(o), 114A and 114AA of the Customs Act, 1962, without proper evidence of compliance with statutory transshipment procedures and without shifting the burden of proof onto the importer to establish actual movement, usage, and accounting of the goods? C. Whether, in the facts and circumstances of the case and in law, the Hon'ble CESTAT erred in treating the vessels involved in the salvage operation as 'extension' of the distressed foreign-going vessel under salvage law, thereby extending the benefit of duty exemption under Sections 86 and 88 of the ....
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....the view that the same would squarely fall within Section 130E(b) of the Customs Act. We say this because the issue raised before us would certainly relate to the determination of a question having a relation to the rate of duty of customs which comes exclusively under the jurisdiction of the Hon'ble Supreme Court to decide. For the sake of convenience, Section 130E of the Customs Act is reproduced hereunder: "130E. Appeal to Supreme Court An appeal shall lie to the Supreme Court from- (a) any judgment of the High Court delivered- (i) in an appeal made under section 130; or (ii) on a reference made under section 130 by the Appellate Tribunal before the 1st day of July, 2003; (iii) on a reference made under section 130A, in any case which, on its own motion or on an oral application made by or on behalf of the party aggrieved, immediately after passing of the judgment, the High Court certifies to be a fit one for appeal to the Supreme Court; or (b) any order passed [before the establishment of the National Tax Tribunal] by the Appellate Tribunal relating, among other things, to the determination of any question having a ....
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.... does not involve such question. PROVIDED that nothing in this sub-section shall be formulated to take away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question. (5) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (6) The High Court may determine any issue which- (a) has not been determined by the Appellate Tribunal; or (b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1). (7) When an appeal has been filed before the High Court, it shall be heard by a bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges. (8) Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall, then, be hea....
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.... category of rate of duty and valuation. These words or phrases in the provision cannot be assumed to be surplusage. 25. The expression "for purposes of assessment" also deserves some attention. It qualifies and governs both the preceding limbs of the exclusion i.e., the rate of excise duty and the value of goods. In other words, the exclusion is not triggered by every question touching rate of duty or value of goods in the abstract. The question must have a relation to rate or value specifically in the context of assessment. It is not the mere mention of rate or value in an order that triggers the exclusion but the fact that the question goes to the root of the assessment itself. 26. The argument that the question of excisability is distinct from the question of "rate of duty" deserves to be rejected at the threshold. The two questions are not merely related, they are sequentially and logically interdependent. An issue on excisability of goods would be intrinsically connected with the "rate of the duty" for the "purpose of assessment". The decision on excisability of goods is a precursor to the determination of any question having a relation to the rate of excise....