The Delhi High Court has declined to entertain the appeal filed by the customs department over Rs. 57K drawback dispute by citing negligible quantum.
The appeal has been filed under Section 130 of the Customs Act challenging the impugned order passed by the Central Excise, Service Tax Appellate Tribunal (‘CESTAT’). The said proceeding arises out of Show Cause Notice dated 24th May, 2023 (SCN’) that was issued to the Respondent-M/s Kunal Travels (Cargo). The allegation in the SCN was that certain goods were misdeclared and hence a penalty was imposed in the Order-in-Original. The said order was appealed by the Respondent before CESTAT which has set aside the Order-in-Original on the ground that there are no proper allegations in the SCN as to which of the regulations has been violated.
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The Court would have been inclined to entertain this appeal only on the ground of the impugned order lacking any discussion on merits. However, considering the following that the total amount alleged to have been wrongly availed by the Respondent by way of drawback is only Rs. 57,201/-; and the penalty is imposed in the Order-in-Original is Rs.50,000/-.
The division bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the penalty imposed in the Order-in-Original was Rs. 50,000, but the total sum claimed to have been improperly obtained by the customs agency through drawback is only Rs. 57,201. Even if the assessee may have violated the law in theory, the Court is not inclined to consider the current appeal considering the negligible quantum involved.
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