Principal Commissioner of Customs Vs Salasar Synthetics (Delhi High Court)
The Delhi High Court recently dismissed an appeal by the Principal Commissioner of Customs against Salasar Synthetics due to a monetary limit of Rs. 1 crore for appeals. The case revolved around the imposition of a redemption fine and penalty under the Customs Act, 1962.
The appeal stemmed from an Order-in-Appeal reducing the redemption fine and penalty imposed on Salasar Synthetics under the Customs Act. However, the Tribunal’s order set aside the original decision, prompting the Revenue to appeal to the Delhi High Court.
The crux of the matter lies in the monetary limit set by the Central Board of Indirect Taxes for filing appeals before the Tribunal, High Court, or Supreme Court. The latest instructions, dated 02.11.2023, prescribe a limit of Rs. 1 crore for appeals to the High Court. As the total sum involved in the case was below this threshold, the appeal was deemed not maintainable.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Appellant/Revenue impugns order dated 02.03.2022, whereby, the Customs Excise & Service Tax Appellate Tribunal (hereinafter referred to as “The Tribunal”) has dismissed the appeal of the Revenue. The Revenue had impugned an Order-in-Appeal dated 08.03.2021. The assessee had filed the subject appeal challenging the Order-in-Original dated 14.08.2020, whereby, a redemption fine of Rs. 40 lakhs was imposed on the respondents/assessee under Section 125 of the Customs Act, 1962 [“the Act”] besides penalty of Rs. 20 lakhs under Section 112-A of the Act. By the Order-in-Appeal dated 10.03.2021, the redemption fine was reduced from Rs. 40 lakhs to Rs. 2.25 lakhs and the penalty was also reduced from Rs. 20 lakhs to Rs. 2.25 lakhs.
