The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the tribunal lacks the authority to change the show cause notice or return the case to the original authority.
The appeal was filed by the Principal Commissioner of Customs (Preventive), Mumbai, in response to an order that dismissed a show-cause notice that was sent to seven individuals. The proposals were confirmed, with the exception of M/s CEAL Shipping & Logistics Private Ltd, which was released from penalty liability under section 114AA of the Customs Act, 1962, while imposing penalty under section 114 of the same Act.
The case was initiated over an attempt to export “shoes” and “cosmetics” at exorbitant rates in order to receive a refund of “integrated goods and service tax (IGST)” that was more than what was actually due. The appeal’s only requested relief is to set aside the order and remand the case to the Principal Commissioner of Customs, Mumbai Zone I, in order to allow for new adjudication. This is allegedly because the Central Board of Indirect Taxes & Customs (CBIC) notification designating various classes of “officers of customs” for designated jurisdictions did not grant the Commissioner of Customs (Preventive), Mumbai, the authority to issue a show-cause notice or make an adjudication.
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Insofar as the appeal and the relief sought are concerned, the customs department argued that only the exporter on file, M/s Blue Ribbon Emporium, had been made respondent and that, despite the fact that other noticees were also suggested to be fastened with negative consequences, they had not been put to notice.
According to the CESTAT, the Tribunal’s jurisdictional structure allows it to either confirm, amend, or revoke a decision or order in an appeal or return the case to the original entity that made the decision, with or without guidance. The tribunal determined that the appeal was unsuccessful because the requested remedy was outside the purview of the authority granted to it under section 129B of the Customs Act of 1962.
The two member bench of C J Mathew (Technical Member) and Ajay Sharma (Judicial Member) while dismissing the customs department’s appeal held that the appeal does not succeed as the relief sought therein is beyond the scope of the jurisdiction assigned to the Tribunal in section 129B of Customs Act, 1962.
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