The Supreme Court of India ruled that no appeals can be dismissed by HC, as not maintainable under Section 130(1) of the Customs Act holding that it is tenable before the Supreme Court. M/s Such Silk International is the respondent-assessee in the present appeal.
Feeling aggrieved with the judgment by which the High Court of Karnataka has dismissed the appeal filed by the Department under Section 130 of the Customs Act as not maintainable by observing that as the dispute can be said to be a dispute with respect to valuation and therefore the appeal would not lie to the High Court but an appeal would lie to this Court. The Commissioner of Central Excise Customs and Service Tax, Mysore is the appellant in the present appeal.
The Court considered the decision in Commissioner of Customs vs. Motorola (India) Ltd, wherein it was held that “The High Court held that the appeals before the High Court would not be maintainable but were tenable before this Court under Section 130E of the Act. The High Court was not justified in holding that the appeals were not maintainable under Section 130(1) of the Act but were tenable before the Supreme Court under Section 130Eof the Act.”
A Coram consisting of Justice MR Shah and Justice MM Sundresh observed that “In the present case, the dispute also is with respect to breach of condition of notification which may ultimately lead to subsequent demand of duty or imposition, but that itself cannot be said to be a dispute with respect to valuation. Therefore, the High Court is wrong in not entertaining the appeal on the ground that the same was not maintainable.”
Arijit Prasad, Senior Advocate, appeared for the Revenue and CharanyaLakshmikumaran, Advocate, appeared on behalf of the respondent-assessee, who is on caveat.
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