Commissioner of Customs Vs Inderjeet Singh Narang (CESTAT Chennai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, considered multiple appeals arising from proceedings related to Order-in-Original No. 91526/2022 dated 21 July 2022 concerning the importer M/s. Diamond Mink Blankets Ltd., Ludhiana. The dispute arose after the Commissioner (Appeals) issued Order-in-Appeal No. 455/2024 dated 15 May 2024 in an appeal filed by the Revenue. In that order, the Commissioner (Appeals) set aside the Order-in-Original without examining the merits and remanded the matter to the “Proper Officer” for fresh adjudication through a de novo order. The assessee challenged this order before the Tribunal through Appeal No. C/40376/2025 along with a stay petition.
Separately, the Commissioner (Appeals) had also passed Order-in-Appeal No. 812/2024 dated 28 August 2024 in an appeal filed by the assessee, dismissing the appeal and upholding the same Order-in-Original. This second appellate order was challenged before the Tribunal by both the assessee and the Revenue through separate appeals. The Revenue contended that once the Order-in-Original had already been set aside by the earlier appellate order, the penalty imposed through that order could not survive and the matter should be remanded to the original authority for fresh adjudication.
During the hearing before the Tribunal, counsel for the assessee submitted that the assessee was not opposed to the remand, as the Assistant Commissioner who issued the Order-in-Original lacked jurisdiction. The counsel further argued that the Commissioner (Appeals) could not direct adjudication by an officer of equal rank such as the Commissioner or Principal Commissioner. The Departmental representative supported the adjudication order and reiterated the Revenue’s grounds.
