The Delhi High Court has nullified an order issued by the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ), citing jurisdictional constraints. The case in question involves a dispute between the Commissioner of Customs ACC Export and M/S Arihant Overseas.
The issue revolves around an appeal filed by M/S Arihant Overseas challenging a demand of drawback and an order of confiscation of goods previously exported under drawback.
The CESTAT, in its decision dated 25th May 2023, had ruled in favour of M/S Arihant Overseas, confirming the appeal and rejecting the contentions of the Commissioner of Customs.
The appellant, the Commissioner of Customs, represented by Mr. Aditya Singla, Mr. Ritwik Saha, Mr. Raghav Bakshi, Mr. Anand Pandey, Mr. Harsh Bhatia and Ms. Charu Sharma argued that the CESTAT lacked the jurisdiction to entertain the appeal.
The appellant contended that according to Section 129 (DD) of the Customs Act, 1962, the appropriate remedy to challenge the order was through a Revision to the Central Government, not an appeal to the Tribunal.
This position was not disputed by the respondent, who acknowledged the statutory provision but argued that the objection to the Tribunal’s jurisdiction was not raised at an appropriate stage.
The respondent, represented by Dr. Seema Jain, Mr. Ajay K. Jain, Mr. Dushyant K Mahant and Mr. Vimlesh Kumar argued that although the Customs Act provided for revision to the Central Government, the objection to the Tribunal’s jurisdiction wasn’t raised in due time, hindering their ability to pursue the statutory remedy.
The High Court stressed the principle that no consent, waiver, or acquiescence could confer jurisdiction upon a court or tribunal if such jurisdiction was explicitly barred by statute. The Court referenced Commissioner of Customs, Air-Cargo Export vs. M/S Sans Frontiers, highlighting the importance of adhering to statutory remedies and the limitations therein.
In result, the division bench of the Delhi High Court comprising Mr. Justice Sanjeev Sachdeva and Mr. Justice Ravinder Dudeja set aside the Tribunal’s order dated 25th May 2023 thus solving the jurisdictional dispute. However, the Court granted M/S Arihant Overseas an opportunity to seek recourse by filing a Revision under Section 129 (DD) of the Customs Act against the Order-in-Appeal dated 14th October 2022, passed by the Commissioner of Customs (Appeal).
The Court directed M/S Arihant Overseas to file the Revision with the Central Government within a period of two months from the date of the judgment. Further, the Court ensured that if the Revision is filed within the specified timeframe, it shall be adjudicated on its merits without being dismissed solely on grounds of limitation.
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