No Justifiable Reasons for Delay in Filing Appeal after Defect Notice: Delhi HC confirms CESTAT Order [Read Order]

A Division Bench of the Delhi High Court confirmed the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) as no justifiable reasons were given for the delay in filing an appeal after defect notice.

The respondent in the present matter is M/s Bergen Engines India Pvt Ltd.

The controversy before the Adjudicating Authority related to the evaluation of the goods imported by the respondent from related foreign suppliers. After a detailed examination, the Adjudicating Authority found that although the foreign suppliers were related to the respondent in terms of Rule 2(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, the value declared by the respondent (importer) was not influenced by their relationship.

The Adjudicating Authority had held that the value declared in the invoices be accepted as transaction value under Rule 3(3)(a) of the Valuation Rules, 2007 subject to usual checks and scrutiny.

The Adjudicating Authority also specified that the said order was based on the written submissions and the documents submitted by the respondent, and directed that if there was any change, error or omission in the said documents, the same was required to be brought to the notice of the concerned Branch.

The Revenue had filed the said appeal before the CESTAT assailing the order, whereby the Commissioner of Customs (Appeals) had rejected the Revenue’s appeal.

The CESTAT Bench, after examining the said letters found, on the basis of the communications, held that the Deputy Commissioner of Customs (Review) had admitted that on verbal enquiries, information was provided that the appeal papers had been returned back to that office by the Registry of the CESTAT.

The CESTAT Bench held that once the Deputy Commissioner of Customs (Review) had become aware that the appeal had been returned back, at least at that stage, he could have taken steps for filing a fresh appeal, however, the appeal was filed much belatedly.

The two member tribunal Bench comprising Justice Vibhu Bakhru and Justice Amit Mahajan observed that “The CESTAT has, accordingly, concluded that there were no justifiable reasons for the delay in filing the appeal after the same was returned as defective. We find that the impugned order is well reasoned and cannot be faulted.”

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