Commissioner of Customs (Port) Vs Supreme Petrochem Ltd (Calcutta High Court)
The Calcutta High Court has dismissed an appeal filed by the Commissioner of Customs (Port) against Supreme Petrochem Ltd., a decision that highlights a critical jurisdictional limitation under the Customs Act, 1962. The appeal, challenging an order from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) concerning the valuation of imported goods, was deemed “not maintainable” by the High Court due to a specific statutory embargo.
The ruling, delivered on November 21, 2024, did not address the merits of the customs duty dispute but focused solely on the High Court’s appellate jurisdiction. The case originated from the Customs Department’s contention that Supreme Petrochem Ltd. had allegedly evaded customs duty by not declaring a crucial freight cost, which should have been included in the “assessable value” of the goods under Section 14 of the Customs Act, 1962, read with Rule 10(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
The Customs Department filed its appeal under Section 130 of the Customs Act, 1962. However, the High Court identified a jurisdictional impediment. Section 130(1) of the Customs Act explicitly states that an appeal shall lie to the High Court from a Tribunal order not being an order relating, among other things, to the determination of any question having a relation to the rate of duty of customs or to the value of the goods for the purpose of assessment.
