Case Law Details
Commissioner of Customs Vs Balaji Exports (Delhi High Court)
In the case of Commissioner of Customs vs. Balaji Exports, the Delhi High Court issued a judgment directing the Customs Excise and Service Tax Appellate Tribunal (CESTAT) to decide appeals on their merits, specifically addressing the question of jurisdiction. Here’s a detailed summary of the judgment:
The respondents in the case were directed to be served through publication on May 18, 2023. The publication was completed, and an order dated January 10, 2024, noted that none of the respondents appeared despite the service through publication. Consequently, the respondents were proceeded against ex parte.
The appeals in question challenged final orders dated July 4, 2017, June 22, 2017, and June 14, 2017.
During the hearing, no representatives appeared for the respondents. The appellants’ counsel mentioned that the legal issue in the case had been settled by a previous decision of a Coordinate Bench of the court in several other cases.
The impugned orders were issued by CESTAT, which had remanded the matters to the Adjudicating Authority to decide on the question of jurisdiction. This decision was contingent upon the Supreme Court’s ruling in a Civil Appeal against the Delhi High Court’s decision in the case of Mangali Impex Ltd vs. Union Of India And Ors. The Coordinate Bench of the Delhi High Court had disposed of various appeals, finding that CESTAT’s orders were not justified. It directed CESTAT to decide the appeals on merit, including the jurisdiction question, independently from the decision in the Mangali Impex Ltd case, as the Supreme Court had stayed the operation of that order.
Furthermore, it was noted that the delay in filing the appeals had been condoned in all the cases.
In light of the above, the High Court deemed it appropriate to dispose of the appeals similarly. The impugned orders were set aside, and the appeals were restored before CESTAT. The tribunal was instructed to decide the appeals on their merits, including the question of jurisdiction, without being influenced by the decision of the High Court in the Mangali Impex Ltd case. Importantly, the High Court clarified that it had not expressed any opinion on the merits of the case, and CESTAT was free to take whatever view it deemed appropriate.
Ultimately, the appeals were disposed of in accordance with the directives outlined above.
In essence, the Delhi High Court’s judgment emphasized the importance of deciding appeals on their merits and instructed CESTAT to independently assess the jurisdiction question without being bound by previous decisions that were currently under review by higher courts.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Respondents were directed to be served through publication vide order dated 18.05.2023. Publication was duly effected and order dated 10.01.2024 records that none had appeared on behalf of respondents despite service through publication.
2. None appears for the respondents even today. Respondents are accordingly proceeded ex parte.
3. All these appeals impugn final orders dated 04.07.2017, 22.06.2017 & 14.06.2017.
4. Learned counsel for the appellants state that the question of law involved in the present case stands decided by a Coordinate Bench of this court in Vipul Overseas Pvt. Ltd v. Commissioner of Customs & Ors.: CUSAA No. 57/2017, decided on 20.11.2017; Forech India PVT. LTD v. Commissioner Of Customs Inland Container Depot, Tughlakabad, New Delhi: CUSAA No.67/2017, decided on 13.12.2017; Commissioner of Customs v. Arif Khichi: CUSAA No.16/2018, decided on 23.05.2018.
5. The orders impugned in these appeals were passed by the Customs Excise and Service Tax Appellate Tribunal (CESTAT). By virtue of the said impugned orders, CESTAT has remanded the matter to the Adjudicating Authority for deciding the issue on the question of jurisdiction after the Supreme Court delivers the decision in Civil Appeal preferred against the decision of this court in Mangali Impex Ltd vs Union Of India And Ors:2016 (335) ELT 605 (DEL).
6. The Coordinate Bench of this court has disposed of several appeals, finding that the orders passed by CESTAT to the aforesaid effect were not justified and further directing the CESTAT to decide the appeals on merit, including the question of jurisdiction, uninfluenced by the decision of this Court in the case of Mangali Impex Ltd (Supra), as the operation of the said order has been stayed by the Supreme Court.
7. It is also pointed out that the delay in filing the appeals has been condoned in all the cases as well.
8. In view of the above, we consider it apposite to also dispose of the appeals in similar terms.
9. The impugned orders are set aside. The appeals are restored before the CESTAT.
10. CESTAT is directed to decide the appeals on merits, including on the question of jurisdiction of the Commissioner of Customs(Preventive)/ Directorate of Revenue Intelligence(DRI) to issue the show cause notices, uninfluenced by the decision rendered by this court in Mangali Impex Ltd (Supra).
11. It is clarified that this court has not expressed any opinion on merits and CESTAT would be at liberty to take such view as it considers appropriate.
12. The appeals are disposed of in the aforesaid terms.
Author Bio
